Korean Government to Use Jeonse System for Hotel Rooms to Drive Down Housing Prices
Here is the Korean government’s latest initiative to drive down housing prices:
![Land Minister Kim Hyun-mee announces the government plans to supply jeonse housese in stablizing the market including remodeling hotels at the government complex in Seoul on Thursday. [YONHAP]](https://i0.wp.com/koreajoongangdaily.joins.com/data/photo/2020/11/19/9dc83b0e-3120-4d4b-9c09-93df7bd9f1cd.jpg?w=640&ssl=1)
The government will increase supplies of residences by 114,000 units over the next two years, including repurposing hotel rooms and office space.
Joong Ang Ilbo
This is the 24th set of real estate measures introduced by the Moon Jae-in government, which has been trying to drive down real estate prices since its first day in office in May 2017.
The units promised Thursday will be let on jeonse, or lump-sum deposit, contracts to attempt to bring down skyrocketing jeonse prices.
According to the Land Ministry on Thursday, 61 percent, or 71,400 units, will be supplied in the greater Seoul area, which includes Incheon and Gyeonggi.
In Seoul alone, 35,300 units will be supplied.
You can read more at the link.
Idiots. The more the government meddles, the more screwed up the market will become. Commies ruin everything.
So much for social-distancing…
If they didn’t destroy camp howze etc. They could have had quite a bit of housing. Hindsight is 20/20 i guess, dumb asses!
Camp howze was a complete dump for delinquent US soldiers, why would any normal people would want to live in an American ghetto?
Is that the Chinese agitprop verson of “Let them eat cake”?
I really feel sorry for our troll. He can’t stick with one name, he hates himself, he’s not thankful for anything…
What a miserable and pathetic existence that must be…
Wow! They are supplying 35000 units in Seoul?
If they are 286 bedroom, 72 bath units, the crisis is solved!
For 15 years, I have not bought an apartment as an investment, scared to death the bubble will pop the moment I do.
Meanwhile, my wife’s sisters both make about 20 million a year while my building maybe goes up in value by a few million.
But when you think about it, the bank gets a quarter to half of that profit in interest. The tax man gets a chunk. The profits have to be reinvested into another overpriced apartment with another chunk of debt… making interest-only payments and gaining equity only through artificial property price inflation.
So there really is no getting ahead except on paper.
And it sounds like a bubble to me… which the banks and government cash in on with the empty promise of being a rich property owner.
When it pops, lots of people are going to be jumping from those apartments.
The effort to control real estate prices is one of the major failures of the Moon administration. They should have let market forces drive the real estate market, while building affordable housing for those who cannot afford the overpriced apartments of the Seoul metropolitan area.
But they decided to take the quick and easy way out resulting in the boondoggle that we are seeing now which ironically will be the nail in the coffin for the leftists.