Oh Se-hoon: Lee Jae Myung administration's real estate policy is a fast-forward version of the Moon administration's failure... It should shift toward expanding supply

[The Financial News] Seoul Mayor Oh Se-hoon criticized the Lee Jae Myung administration's real estate policy, saying, "Is this a fast-forward version of the Moon administration's real estate failure?"
On the 11th, Oh said on social media that Seoul apartment prices had risen 14.73% in just one year since the Lee Jae Myung administration took office. He added that this easily surpassed the first-year gains under the Roh Moo-hyun administration (11.68%) and the Moon administration (9.41%), calling it "the brutal reality that 10 million Seoul citizens feel every day and the true face of the housing crisis."
Oh pointed out that "the more serious issue is that the current surge is no accident," adding that the Lee Jae Myung administration's real estate policy bears an eerily similar resemblance to the policy failures of the Moon administration.
As examples of similarities with the previous Moon administration, he cited tighter lending rules immediately after taking office and expanded designations under the Land Transaction Permit System and Speculative Overheating Districts. He also said the Lee Jae Myung administration's policies, including restrictions on relocation loans for redevelopment and reconstruction projects, heavier capital gains taxes on multiple-home owners, and higher property taxes, are factors behind rising home prices.
Oh said, "It is showing the failure formula of regulations that were slowly damaging the market over five years, compressed into just one year," and added, "Isn't that why citizens are lamenting that this is a fast-forward version of the Moon administration's real estate failure?"
He also criticized President Lee's commemorative speech marking the first anniversary of his inauguration on the 8th.
Oh said, "Not long ago, the president said he had 'done a fairly good job of containing upward pressure on home prices' and described the current real estate policy disaster as a 'normalization process.'" He added, "Listings are shrinking, jeonse homes are disappearing, and monthly rents are soaring. The more the government pressures multiple-home owners by labeling them as enemies, the more landlords choose to hold on rather than put their homes on the market."
He went on to stress that "the government itself is acknowledging concerns about a shortage of listings while also considering additional regulations," and that "the real estate market can be stabilized only through predictable supply policies, not slogans or ideology."
Oh said, "What Seoul citizens want now is not another real estate war, but practical policies that bring jeonse listings back to the market, normalize redevelopment and reconstruction, and increase supply." He added, "Will we really go all the way down the path of a forewarned real estate disaster? Now is the time to change course toward expanding supply and normalizing the market."

chlee1@fnnews.com Lee Chang-hoon Reporter