Oh Se-hoon, the Mayor of Seoul, urged the government to reassess its real estate policies after apartment prices in the city rose for 86 consecutive weeks, surpassing the previous record of 85 weeks set during the Moon Jae-in administration.
In a Facebook post titled "We Must Abandon the Faith in Actual Residence and Tax Absolutism," Oh cited a recent analysis from the Seoul Real Estate Policy Development Center, which indicated that price increases were particularly pronounced in non-Gangnam areas and outer districts.
From June to August, the average sale price of apartments in Seoul increased by 3.5%. During this period, Dongdaemun recorded the highest increase at 5.8%, followed by Geumcheon at 5.4%, and Dobong, Gangseo, and Gangdong at 4.7%, with Nowon at 4.3%.
Oh noted that the recent slowdown in price increases in Gangnam, Seocho, and Songpa stands in stark contrast to the ongoing trends in non-Gangnam and outer areas, where a so-called "key adjustment" phenomenon is occurring.
He explained that rental prices also saw relatively high increases in outer and non-Gangnam areas, with an average rise of 3.5% across Seoul. Notable increases included Seongbuk at 6.0%, Jungnang at 5.5%, Nowon and Guro at 5.0%, Gangbuk at 4.8%, and Seodaemun at 4.7%.
Oh attributed these trends to the government's indiscriminate loan regulations, stating, "As demand was suppressed by these regulations, it shifted to more affordable areas, ultimately driving up both sale and rental prices in those regions."
He criticized the government's real estate policies, which he claimed, rather than stabilizing prices, have escalated them across Seoul due to a reliance on actual residence and tax absolutism.
Oh also raised concerns that the housing burden resulting from government policies could disproportionately affect young people and the elderly. He remarked, "Young couples and individuals seeking their first homes in the more affordable outer areas of Seoul are facing renewed frustrations as the housing ladder has been cut off."
Regarding tax burdens, he expressed worry that retirees who have worked a lifetime to purchase a home may have to leave their long-time neighborhoods due to tax pressures, mentioning the recent emergence of the term "tax exodus."
Oh emphasized that the government should not focus solely on the slowdown of price increases in certain Gangnam areas. He stated, "The success of real estate policy cannot be judged solely by the percentage of price fluctuations in Gangnam. We must also consider the housing sustainability for youth, families, and the elderly." He called on the government to conduct a comprehensive review of its policies regarding supply, loans, and taxes.
* This article has been translated by AI.
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