Gov’t Considers Price Ceiling for New Apartments on Private Land

The government is considering a price ceiling system for new apartments on private land.

During a parliamentary question and answer session on Wednesday, Land Minister Kim Hyun-mee said the government is closely examining when and how to introduce the system.

Kim explained that the high prices of new apartments present an imposition for home buyers and drive up prices in their surrounding areas. She said that placing a ceiling would help ameliorate these issues.

Kim rejected concerns that a price cap would incentivize the use of cheap, low-quality construction materials, saying no such problems have arisen in apartments built on public land where price controls are already in place.

She also said she doesn't agree that price caps on private land would cause an apartment shortage as supply has recovered since 2010.

Source: KBS World Radio

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