The government and ruling Democratic Party on Wednesday agreed to toughen regulations to stabilize an overheating real estate market.

The government is set to announce the measures later in the day, including increasing capital gains taxes on multiple-home owners and restricting the resell of purchase rights of new apartments, which has been cited as a major speculative practice aggravating problems facing regular households.

The government is also expected to list four affluent districts in southern Seoul and the administrative city of Sejong, some 130 kilometers southeast of Seoul, as both "speculation zones" and "excessive speculation zones" subjecting them to far tougher tax and financial regulations and state scrutiny.

"The government has drawn up a comprehensive policy package that centers on addressing the overheating real estate market by curbing short-term speculative demand, and managing the market to the benefit of those actually in need of houses," Land Minister Kim Hyun-hee said during the party-government consultation meeting.

She called for the party's cooperation in passing the related bills through parliament.

The minister attributed volatility in the real estate market to "excessive" relaxation of regulations, the low interest rate and a pick-up in overall economic conditions, which have fueled speculative activities. (Yonhap)