Seoul Mayor Oh Se-hoon has projected that the ongoing shortage of rental properties in the city is likely to drive up housing prices through the end of this year and into early next year. He noted that the rental crisis in the northeastern and southwestern outskirts of Seoul is expected to keep apartment prices rising for the foreseeable future.
During a National Assembly audit on October 19, Oh responded to a question from lawmaker Eom Tae-young of the ruling People Power Party regarding future housing price trends. Oh stated, "Experts generally predict that the likelihood of housing prices falling by the end of this year or early next year is lower than the possibility of continued upward movement."
Eom referenced the government's and the Korea Land and Housing Corporation's (LH) forecasts for housing market stabilization and price declines, seeking Oh's perspective on these views.
In response, Oh explained, "Currently, the rental inventory in Seoul is depleted, and both rent and monthly lease prices are rising. In this situation, even those who previously had no urgent need to buy a home are now feeling compelled to enter the market, albeit late."
He added, "The upward trend in apartment prices in the northeastern and southwestern outskirts of Seoul is unlikely to reverse anytime soon, according to general predictions."
Concerns were also raised about the declining rental listings in Seoul's outskirts. Lawmaker Jeong Dong-man pointed out that areas with mid- to low-priced housing, such as Nowon and Jungnang, are experiencing significant reductions in rental inventory, which could further stimulate increases in sale prices.
Oh emphasized the severity of the rental crisis, stating, "In the outskirts of Seoul, specifically in the northeastern and southwestern regions, the rental inventory has not decreased by 10-20%, but rather by 70-80%."
He expressed concern that if the rental crisis persists, demand for rentals could shift to the sales market, increasing upward pressure on apartment prices in the outskirts of Seoul. "As long as the current rental and monthly lease crises continue, the rise in sales prices for apartments in the outskirts of Seoul is a foregone conclusion," he said.
Oh also indicated that a reevaluation of the government's focus on owner-occupied housing policies is necessary. He remarked, "A multi-homeowner can also be seen as a private rental business operator. While some may hold multiple properties for asset accumulation or speculation, their inventory is being provided to citizens in rental form."
* This article has been translated by AI.
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