Seoul Citizens at Real Estate Debate Urge Supply, Jeonse and Monthly Rent Measures First

At a real estate policy debate hosted by the Seoul Metropolitan Government, concerns were intensively raised that the government's tax revision plan could lead to instability in the jeonse (lump-sum housing lease) and monthly rent markets and a contraction in housing supply.

While agreeing with the government's stance on expanding supply, participants also voiced opinions that the government's negative perception of redevelopment and reconstruction projects must change, and that the protection of the private rental market, which acts as a housing supply agent, is necessary.

The Seoul Metropolitan Government held the Citizens' Grand Debate for Real Estate Normalization hosted by Mayor Oh Se-hoon for about 100 minutes this morning (the 6th) at the main auditorium of Seoul City Hall.

About 50 people attended the debate, including general citizens, real estate agents, real estate YouTube creators, professors, and experts.

The debate particularly focused on evaluating the government's real estate tax revision plan announced on the 3rd, its impact on the housing market, and directions for supplementation.

Participants diagnosed that although the government explains the policy as targeting ultra-high-priced homes and multiple homeowners, the actual impact is highly likely to spread to the jeonse and monthly rent markets, homeless ordinary citizens, and the younger generation.

In particular, they formed a consensus that supply expansion and market stabilization must be achieved together.

Kim Je-kyung, head of Tumi Real Estate Consulting, pointed out, "Looking at the August 3 tax revision plan, I think the Lee Jae-myung administration's real estate policy is nearly a failing grade. At least during the Moon Jae-in administration, they did not touch long-term holders, the elderly, or existing actual residents, but now they are setting tax caps and pushing people to sell everything under the pretext of reducing excessive benefits even for single-home owners."

Mentioning President Lee Jae-myung's sale of his Bundang apartment, Director Kim criticized, "Even the President acquired it in 1993 and made a market profit of 2.5 billion won, but no one calls it speculation. This is because he acquired it long ago and was a genuine resident. However, now they are driving other people to sell by 2027 because their capital gains are large."

Roh Hee-cheon, a professor of accounting at Soongsil University, also said, "If the tax burden increases, homeowners will eventually move to reflect this in jeonse and monthly rent prices. Since the long-term holding special deduction and property tax revisions can also cause changes that are difficult for market participants to predict, supplementation to enhance the predictability and neutrality of taxation is necessary."

Voices also emerged that properties in the lease market are disappearing due to government policies emphasizing actual residency.

Kim Min-jung, a young person who recently found a job and looked for a home in Seoul, said, "I tried to find a jeonse home, but there were almost no listings, so I eventually chose monthly rent. I am worried whether I might have to leave the home I secured with difficulty now due to tightened actual residency requirements."

Noh Hyang-nam, who runs a real estate agency in Cheonho-dong, Gangdong-gu, suggested, "Due to the implementation of the land transaction permit zone system, apartments can only be traded for actual residency, and due to loan regulations and others, jeonse and monthly rent lease properties cannot come out. Policies and tenant protection measures that can revive not only apartments but also the non-apartment rental market together are necessary."

Kim Yong-hyuk, a licensed real estate agent running an agency in Gangseo-gu, also said, "If there are no jeonse and monthly rent properties, people who lived in jeonse and monthly rent must also buy homes, and then trading demand increases, which inevitably drives up housing prices. However, the government's measures demonize multiple homeowners and state that even single-home owners must move in to receive tax benefits, resulting in a situation where tenants are kicked out and people who used to live in jeonse and monthly rent must come out."

Opinions were also raised that the government should consider jeonse and monthly rent tenants in its supply measures and ease regulations by recognizing rental business operators as supply agents.

Lee Chang-mu, a professor at Hanyang University, said, "Even though Seoul is a city where more than half of the citizens are tenants, this government measure did not sufficiently consider the impact on the jeonse and monthly rent market. We should not view all non-residence property owners supplying rental housing as targets of speculation, but rather look at the role they play in the market together."

Yoon Ji-hae, head of the Research Lab at Real Estate R114, also argued, "Increasing supply, whether public or private, is the most important thing. We must simultaneously pursue available supply measures such as redevelopment, reconstruction, and new housing site development to resolve market instability."

Mayor Oh Se-hoon said, "I understand that the government will soon prepare and announce real estate supply measures. The Seoul Metropolitan Government will help where it can and do its utmost to stabilize the real estate market."

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.