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

Seoul Mayor Oh Se-hoon acted as a 'star lecturer' on Wednesday (July 15), arguing that the Lee Jae-myung administration's real estate 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 titled 'Star Mayor Oh Se-hoon - Stories I Couldn't Finish at the Cabinet Meeting: The Lee Jae-myung Administration's Real Estate Hell, An Analysis Report' on the mayor's official website and the social broadcasting platform Live Seoul.
Mayor Oh pointed out that over the past year, Seoul apartment sales prices have risen 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 were first compiled.
He attributed this to the government's focus solely on suppressing demand—such as restricting mortgage loans, expanding regulated areas, and imposing heavy capital gains taxes on multi-home owners—despite announcing six real estate measures over the past year.
Comparing the measures 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 holding taxes, is similar."
He explained that following the June 27 measures, which limited mortgage loan limits to 600 million won, buying demand did not disappear but instead shifted toward apartments priced at 1.5 billion won or less.
After 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.
"The measures introduced to curb Gangnam housing prices have instead driven up prices in non-Gangnam areas, the Han River belt, and the outskirts of Seoul," Mayor Oh said. "Aside from a brief pause immediately after the measures, the overall price trend has continued to move upward."
Previously, Mayor Oh attended a cabinet meeting on Tuesday (July 14) to express his views on real estate policy, but he was unable to secure an opportunity to speak and instead submitted a 30-page report.
"The Seoul Metropolitan Government has made 18 proposals to the government on seven occasions over the past year," Mayor Oh emphasized. "This is not about confronting the government. Real estate is a matter that affects citizens' lives, regardless of ruling or opposition parties, and as the entity closest to the field, Seoul is sharing its data."
Mayor Oh plans to release a follow-up video soon, which will include details on shifting policy directions, Seoul's own measures, and solutions proposed to the government.
(Photo: Screenshot from Seoul Mayor's website video, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.