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Reforming Housing and Regional Policies in Korea

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  • Randall S. Jones
  • Tadashi Yokoyama
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    Abstract

    The government has introduced five policy packages since August 2005 to stabilise house prices, mainly due to concerns about possible spill-overs from the capital region to other parts of the country, even though the increase on a nation-wide basis has been modest compared to other OECD countries. The planned expansion in housing construction in the capital region will reduce upward pressure on house prices. However, other policies aimed at reducing “speculative” demand and lowering house prices, such as the price ceiling on new houses, are likely to constrain supply and result in stronger price pressures in the longer term. The government should shift its focus from short-term price fluctuations in house prices to creating an efficient housing market, relying more on private-sector supply. Concern about increasing concentration in the capital region should be dealt with through economic instruments to address externalities, such as pollution and congestion, while phasing out the restrictions on construction in the capital region. Réformer la politique du logement et la politique régionale en Corée Le gouvernement a mis en place depuis août 2005 cinq séries de mesures destinées à stabiliser les prix des logements, même si la hausse de l’immobilier a été modeste en Corée par rapport à d’autres pays de l’OCDE. Le développement prévu de la construction de logements dans la région de la capitale atténuera les pressions à la hausse sur les prix immobiliers. Mais d’autres mesures visant à réduire la demande « spéculative » et à faire baisser les prix des logements, notamment le plafonnement des prix des logements neufs, sont de nature à limiter l’offre et à accentuer les pressions sur les prix à long terme. Au lieu d’essayer avant tout de remédier aux fluctuations à court terme des prix immobiliers, le gouvernement devrait s’efforcer de créer un marché du logement qui soit efficient, tout en s’appuyant davantage sur l’offre privée. Face au problème de la concentration de plus en plus forte dans la région de la capitale, il faudrait utiliser des instruments économiques pour remédier aux externalités, en particulier la pollution et les encombrements, tout en mettant fin progressivement aux restrictions à la construction dans la région de la capitale.

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    File URL: http://dx.doi.org/10.1787/241645113684
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    Bibliographic Info

    Paper provided by OECD Publishing in its series OECD Economics Department Working Papers with number 613.

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    Date of creation: 16 May 2008
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    Handle: RePEc:oec:ecoaaa:613-en

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    Keywords: Korea; fiscal decentralisation; house prices; regional policy; property tax; housing market; housing policies; balanced regional development; enterprise cities; real estate price bubbles; mortgage lending; capital gains taxes; air pollution; innovation cities; prix immobiliers; crédit hypothécaire; politique du logement; bulles immobilière; impôts sur les plus-values; marché des logements; pollution atmosphérique; villes innovantes; villes pour l’entreprise; décentralisation budgétaire; Corée; impôt immobilier; politique régionale;

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