[Editorial] If the 32nd Real Estate Policy Ends in Failure

While transaction volumes in Seoul have reportedly declined, housing prices in the city are once again rising, and the rental crisis has only worsened. In effect, the policy has failed. Even President Lee Jae-myung recently admitted, "Because of housing prices in Seoul and the Greater Seoul area, I’ve been facing a lot of criticism lately, and frankly, there seems to be no solution. " Experts predict that the rental crisis will intensify next year.
Previous policies have restricted loans and imposed mandatory occupancy requirements, naturally reducing the supply of jeonse (long-term rental) units and pushing demand toward monthly rentals. With the supply of jeonse already dried up, the burden falls squarely on ordinary citizens. The public’s patience has worn thin. One real estate expert explained, "People consider this policy to be the 31st attempt.
" Many believe the Lee Jae-myung administration is essentially a continuation of the Moon Jae-in government. This is why the real estate policy set to be announced next month is so important. If the so-called '32nd policy' also ends in failure, the public’s disappointment will be all too predictable. This time, the policy must prioritize supply, even if it means taking bold measures.
In particular, increasing supply in Seoul is essential. Concerns are already being raised about a decrease in new apartment supply in Seoul next year. According to Zigbang, the number of new apartment units in Seoul in 2026 is projected to be 16,412, a 48% drop compared to this year. Nationwide, a 28% decrease is expected.
Redevelopment and reconstruction projects in Seoul and the Greater Seoul area should be expedited as much as possible. Zigbang reports that 87% of next year’s new units in Seoul will come from these projects. Association leaders and members I met on-site all agreed, "There are too many complicated regulations. " Although the Seoul Metropolitan Government claims to have eased many restrictions, those on the ground say they "cannot feel the impact.
" Attempts to forcibly suppress housing prices in Seoul should also be reduced. Some suggest that a shift in perspective is needed, treating Seoul as fundamentally different from other regions and introducing separate systems and policies. I agree with this approach. The local elections are just around the corner.
Real estate policy has long influenced voting outcomes. 8 percentage points. It is widely believed that those who experienced the failures of the Moon Jae-in administration’s real estate policies turned their backs. The public’s judgment is imminent.
Experts continue to emphasize that the 32nd real estate policy will determine the direction of the June elections next year.
Two months have passed since the Lee Jae-myung administration announced the October 15 Real Estate Policy.
kjh0109@fnnews.com Reporter