Seoul Mayor Oh Se-hoon Criticizes Government's Demand-Side Real Estate Policies

Seoul Mayor Oh Se-hoon has stepped forward as a self-proclaimed star instructor on real estate, arguing that the Lee Jae-myung administration's demand-suppression policies over the past year have led to a triple surge in sales, jeonse (long-term deposit rental), and monthly rent prices.
The Seoul Metropolitan Government released a video today (July 15) titled "Star Instructor Mayor Oh Se-hoon - Things I Couldn't Say at the Cabinet Meeting: A Report on the Causes of the Lee Jae-myung Administration's Real Estate Hell" on the mayor's official website and the social broadcasting platform Live Seoul.
Mayor Oh pointed out that over the past year, apartment sales prices in Seoul rose by 13.1%, jeonse deposits by 6.3%, and monthly rents by 7.4%. He specifically noted that jeonse prices saw their highest growth rate in 11 years, while monthly rents experienced their largest increase since related statistics began to be compiled.
He attributed this trend to the government's focus on demand-suppression measures—such as restricting mortgage loans, expanding regulated areas, and imposing heavy capital gains taxes on multi-home owners—despite announcing six separate real estate packages over the past year.
Comparing the policies of the Moon Jae-in administration with those of the current government, he stated, "The flow of policies, which includes loan regulations, announcements of rental housing supply, designation of speculative zones, and the strengthening of capital gains and property taxes, is similar."
He explained that after the June 27 measures, which limited mortgage loan caps to 600 million won, buying demand did not disappear but instead shifted toward apartments priced at 1.5 billion won or less.
Following the measures, 78.1% of all transactions in Seoul were concentrated on apartments priced at 1.5 billion won or less, leading to price increases in non-Gangnam areas.
Mayor Oh said, "The measures introduced to curb housing prices in Gangnam have instead driven up prices in non-Gangnam areas, the Han River belt, and the outskirts of Seoul," adding, "Prices only paused briefly immediately after the measures, but the overall trend has continued to rise."
Previously, Mayor Oh attended a cabinet meeting the day before (July 14) to express his views on real estate policy, but he was unable to obtain an opportunity to speak and instead submitted a 30-page report.
Mayor Oh emphasized, "Over the past year, (the Seoul Metropolitan Government) has made 18 proposals to the government on seven occasions. This is not about confronting the government. Real estate is a matter that affects the lives of citizens, regardless of ruling or opposition parties, and as the Seoul Metropolitan Government, which sees the situation closest to the field, we are sharing our data."
Mayor Oh plans to release a follow-up video soon, which will include details on shifting policy directions, the Seoul Metropolitan Government's own measures, and solutions proposed to the central government.
(Photo: Screen capture from the Seoul Mayor's website, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.