추미애 Raises 'Land Development Cost Linkage System': "120 Million Won Apartment Now Possible for 50 Million Won"

[Asia Economy Reporter Oh Ju-yeon] Former Minister of Justice and Democratic Party presidential candidate Chu Mi-ae announced on the 18th, "If elected president, I will immediately revert to the land development cost linkage system."

[Image source=Yonhap News]

On the same day, former Minister Chu said on Facebook, "If we start with the land development cost linkage system, an apartment priced at 1.2 billion won could be available for 500 million won."

Former Minister Chu explained, "The pre-sale of the 3rd phase new towns, implemented to stabilize real estate, began with Incheon Gyeyang New Town. However, since the sale prices are similar to the surrounding market prices, the price stabilization effect is limited," adding, "This is due to the cost calculation method based on appraised value."

She added, "The Participatory Government implemented the land development cost linkage system for public development sites in 2005 to stabilize real estate, but in 2016, the Park Geun-hye administration changed this standard to the appraised value," and continued, "As a result, sale prices increased according to surrounding market prices, and the sale prices in turn pushed up the surrounding market prices, creating a vicious cycle."

She then emphasized, "The government should revert to the land development cost linkage system even now," and stressed, "Even if it does not happen immediately, if I am elected president, I will promptly revert to the land development cost linkage system."

Former Minister Chu mentioned, "The sale prices in areas where pre-sale is currently being conducted can also be adjusted later," and said, "The land development cost-linked sale price ceiling system can lower sale prices to less than half of the market price, and this is expected to also remove the bubbles in the surrounding market prices." She added, "The land development cost linkage system for public land is the starting point of the 'Sanopse' (a world where people are high) real estate policy."

This content was produced with the assistance of AI translation services.