Rising housing prices in Seoul and trust in policy

Given that housing prices are rising only in a few districts after nearly two years of sustained decline, the government needs to manage the pace of price growth through more tailored and careful policy measures. — The Korea Herald

AN efficient economic policy is not necessarily one that simply achieves its intended goal regardless of side effects, but rather one that economic players trust, believing it was based on a correct assessment of the situation and expected effects from the policy.

Measured against this criterion, South Korea’s recent policies and top officials’ comments on rising house prices in the capital area fall short of being efficient -- not because they will fail to curb housing prices, but because they are not aligned with the people’s assessment of the current situation.