Lee: “We must shed the stigma of being a real estate speculation republic; accurate data matters”

[Financial News] President Lee Jae Myung said on the 3rd, “It is clear that, for the future of South Korea, we must shed the stigma of being called a real estate speculation republic,” adding, “Among the things the government can do, I think it is necessary to properly explain objective data.” He was cautioning against market interpretations that focus on only some statistics and saying the public should be helped to make judgments based on objective indicators such as listings, transaction volume and actual transaction prices.
At the State Council meeting that day, President Lee said, “There are various views emerging about the outlook for the real estate market, particularly housing prices in the Seoul metropolitan area. Some are becoming concerned about a sharp drop,” adding, “No one can be 100% certain about the future, but it is a fact that housing prices in South Korea are abnormally high.”
President Lee noted, “Of course, statistical data are published regularly, but I worry about whether they are being properly conveyed,” adding, “I can see those who benefit from rising housing prices taking only some of the data and steering things in one direction.”
He continued, “For example, apartment listings in Seoul are increasing rapidly, aren’t they?” and said, “Transaction volume is falling very rapidly.”
He added, “Actual transaction prices in major areas are also continuing to fall,” and said, “They are falling to a surprising degree, although there are areas where that is not the case.”
President Lee urged that “it may be important to make sure this accurate data is properly conveyed so the public can access it directly.”
On fluctuations in real estate prices, he said, “It is most desirable for real estate prices to stabilize; neither a sharp surge nor a sharp drop is desirable,” adding, “But that does not necessarily happen according to the wishes of the government authorities.”
He emphasized, “Nevertheless, I think it is a major role of the government to trust the market and enable people to respond to market conditions based on accurate information.”
[email protected] Choi Jong-geun Reporter