Despite recent signs of stability, jitters remain over the South Korean properties market due to ample liquidity and the delayed parliamentary passage of property-related laws, the finance minister said Thursday.

Seoul has been pushing to rein in soaring house prices amid fears of a property bubble. In mid-January, the government announced its plan to require private builders to unveil part of apartment construction costs.

"Recently, apartment prices in South Korea have stabilized somewhat on the back of the government measures," Kwon O-kyu told a weekly press briefing. "However, market jitters remain due to a delay in the parliament's passage of the new regulations, ample liquidity and other factors."
The main opposition Grand National Party opposes a property bill, arguing such a policy runs counter to market principles.

Despite the delay, the government move has contributed to the stabilization of apartment prices in Seoul, the minister said.

According to data by Kookmin Bank, apartment prices in Seoul rose 0.3 percent in February from a month earlier, a much slower growth rate than the 1.8 percent advance in January,
"In order to maintain stability, it is important to win market trust," Kwon said. "The government believes it is important to push for its property tax policy consistently in order not to send a wrong signal to the market."
In 2007, the government expects to collect a total of 2.8 trillion won (US$2.9 billion) worth of comprehensive property taxes, up 1.2 trillion won from a year earlier, due to the rise in housing prices, the minister said. The tax is imposed on the owners of homes worth more than 600 million won.

About 505,000 households will have to pay the comprehensive property tax this year compared with 341,000 in 2006.