Oh Se-hoon Says Real Estate Forum Should Focus on Supply and Rent Stability

[Financial News] Seoul Metropolitan City Mayor Oh Se-hoon said in connection with the government's planned public forum on real estate policy, "The key agenda should not be who will bear more taxes, but supply and stability in jeonse and monthly rent."
On the 12th, Oh said on his social networking service that he was concerned the large-scale forum could once again become a venue where the discussion centers on "who should pay more taxes," citing the debate topics the President had posted as examples.
The government will hold a public discussion on real estate on the 23rd, chaired directly by President Lee Jae Myung. The aim is to seek solutions together with the public as housing prices continue to rise despite the government's ongoing "war on real estate" since taking office.
On the 10th, President Lee hinted at the main issues to be discussed at the forum through social networking service. He said, "Wouldn't it help public debate if we announce in advance the major issues, such as an appropriate holding tax on real estate, whether there should be a distinction between a one-home owner-occupied residence and non-residential or multiple-home properties, how large that gap should be, whether ultra-expensive owner-occupied homes should be treated separately, the threshold for additional taxes on ultra-expensive homes, the relationship between holding taxes and transaction taxes, and how holding tax revenue should be used?"
Oh has been presenting "overwhelming supply," a pledge he has promoted since the June 3 local elections, as the solution. He stressed, "What the public wants is not a supply plan expressed only in numbers, but effective policies that convince the market that supply will expand." He added, "The market can stabilize only when there is confidence in supply."
He went on to say, "Redevelopment projects are the most reliable way to build more homes," and added, "If redevelopment projects are not carried out on time, new housing supply will be blocked and demand will inevitably flow only into the existing housing market."
He added, "How to improve practical obstacles such as lending regulations that are blocking redevelopment projects must also be treated as a key agenda item."
He also pointed to the decline in jeonse listings and the rise in monthly rent as essential issues. Oh said, "The most urgent issue for young people, newlyweds, and ordinary citizens is a home they can move into right away and live in stably." He added, "We must also discuss how to address the reality that jeonse listings are shrinking and rent burdens are growing heavier." In particular, he noted, "What people find most difficult is the reality that both housing prices and jeonse and monthly rent prices are soaring at the same time." He said a debate that avoids the hardships people are most acutely feeling cannot be considered one that truly listens to voices from the field.
Oh said, however, that he welcomed the fact that the President and the government are holding a public forum to hear citizens' voices directly on the housing issue. He added that it is fortunate such a forum has been arranged, even if belatedly.
He said he hopes the forum will become a starting point for reflecting the public's urgent concerns as they are and for developing practical solutions that people can actually feel in their daily lives.

[email protected] Lee Chang-hoon Reporter