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“We’re witnessing sections of society being shut out of parts of our city because they can no longer afford apartments” - Berlin Mayor Michael Mueller.
The Housing Crisis Is Shaping Politics
Soaring property prices are forcing people all over the world to abandon all hope of owning a home and the fallout is shaking up governments.- In July 2021, the cost of an apartment in Shenzhen, China was equal to 43.5 times a resident’s average salary.
- In Canada, Prime Minister Justin Trudeau has promised a two-year ban on foreign buyers if re-elected.
- In South Korea, President Moon Jae-in’s party took a drubbing in mayoral elections this year after failing to tackle a 90% rise in the average price of an apartment in Seoul since he took office in May 2017.
Per reports, the average price of an apartment in the capital city Seoul has roughly doubled to 1.18 billion won when compared to 2016.
3X Real Estate Tax To Cool Down Market
After trying numerous measures that didn't work, the government revised the law last year, increasing the holding tax rate for homeowners, in another attempt to cool the country's red-hot real estate market. The changes took effect this year.
Word On The Street?
🎙 "The government is shifting its responsibility over home price increase, the result of its policy failure, to us.", said Park.
📝 Park is among the 947,000 people or 2% of South Korea's 52 million population subject to the tax increase this year.