Oh Se-hoon: Seoul home prices are seeing “upward equalization,” not “flattening”

[Financial News] Seoul Mayor Oh Se-hoon has directly rebutted President Lee Jae-myung’s assessment that the recent rise in home prices on Seoul’s outskirts amounts to “flattening.” While home prices in the Gangnam area have fallen somewhat, prices in the outskirts of Seoul, which had been relatively affordable, have instead risen sharply, pushing up home prices across the city.
At a press conference at Seoul City Hall on the 7th marking his 100th day in office during the ninth popularly elected term, Mayor Oh said, “Calling prices flat gives the impression, in terms of the wording, that they have stabilized at a lower level, but that is clearly not the situation now.” He added, “The right description is that prices are undergoing ‘upward equalization.’”
Mayor Oh cited data from the Korea Real Estate Board (KREB). According to him, over the roughly eight weeks from the second week of August until recently, the apartment sale price index fell 2.23% in Gangnam District and 1.62% in Seocho District. By contrast, it rose 3.18% in Seongbuk District, 3.16% in Seodaemun District, 3.08% in Jungnang District, and 2.8% each in Nowon and Gangbuk Districts.
Mayor Oh explained, “While prices are falling in Gangnam and Seocho, they are rising across Seoul, and the increases are much larger than the declines in the Gangnam area.” He added, “The average across Seoul as a whole rose 1.31%.”
He went on to point out, “Home prices in the outskirts, which had been relatively affordable, are also rising this steeply. Calling this ‘flat’ is wrong from any perspective.”
He also noted that the current average sale price of an apartment in Seoul is 1.62469 billion won and the average jeonse price is 722.53 million won. “It is difficult to buy a home and difficult to find a jeonse rental, and even if you find one, the price is too burdensome to move in. Monthly rents are also rising steeply in tandem. That is the current state of Seoul’s real estate market,” he said.
He argued that the supply of private long-term rental housing should also be promoted, alongside urban renewal projects such as reconstruction and redevelopment, which account for a large share of Seoul’s housing supply.
Mayor Oh said, “We need to create an investment-friendly environment through tax breaks and financial and loan incentives so investors can enter the sector.” He added, “There are funds waiting on the sidelines, including foreign capital such as Canadian pension funds, that see Seoul’s real estate market as worth investing in, but they are hesitating and watching the situation.”
He predicted, “With just a few incentives, they could enter the market easily. If we allow for a preparation period of two to three years, then in three to four years Seoul’s rental market could become a ‘supply-led market,’ with more units being supplied.”
He also criticized government policy, saying that new permits for youth housing had effectively ground to a halt.
Mayor Oh said, “Businesses enter the market to make money. If we create conditions in which they can make money, they are waiting to come in, but not a single permit is being issued.” He added, “I feel truly powerless watching the president repeatedly emphasize, whenever there is an opportunity, that the lack of permits is ultimately the Seoul Metropolitan Government’s responsibility.”
He left open the possibility of consultations with the government. Mayor Oh said, “There are things the Seoul Metropolitan Government can do, and things the government needs to help with.” He added, “I have asked the new Minister of Land, Infrastructure and Transport to meet with me soon.”
He added, “If we meet, I will emphasize these points fully and continue working to improve the conditions for housing supply in Seoul.”

[email protected] Lee Seol-young Reporter