Negative Evaluation of Moon Jae-in Administration's Real Estate Policy at 68%... Highest Since Inauguration [Gallup]

15% Say Real Estate Policy is 'Well Done' vs 68% Say 'Poorly Done'
In the Next Year, 66% Expect Rent for Jeonse and Monthly Lease to 'Increase', 7% 'Decrease', 17% 'Remain Unchanged'
Lease 3 Laws Amendment, 25% See 'Positive Impact', 42% 'Negative Impact', 12% 'No Impact'

[Image source=Yonhap News]

[Asia Economy Reporter Kang Nahum] A public opinion poll revealed that negative sentiment toward the Moon Jae-in administration's real estate policies has reached its highest level since the government's inception.

According to a survey conducted by Gallup Korea from the 3rd to the 5th of this month, targeting 1,002 adults aged 18 and older nationwide, 15% responded that the government is "doing well" in its real estate policies, while 68% said it is "doing poorly," the organization announced on the 6th. Seventeen percent withheld their evaluation.

Although there is little difference compared to before the July 10th measures were announced, the positive rating for real estate policies hit the lowest point since the government took office, while the negative rating reached a record high. The negative rating for real estate policies has risen alongside surges in housing price expectations in September 2018, December 2019, and July 2020.

Across most respondent characteristics such as gender, age, and region, the opinion that the government is "doing poorly" on real estate policies was predominant. Looking at housing price expectations, those expecting prices to rise showed a higher negative rating (81%) compared to those expecting prices to remain stable (54%) or fall (40%).

Among those with negative evaluations, reasons cited included "housing price increases / housing prices are expensive" (30%), "lack of consistency / flip-flopping" (9%), "regulatory side effects / balloon effect" (8%), "ineffectiveness / not a fundamental solution" (7%), "harm to ordinary citizens / difficulty for ordinary people to live" (6%), "rising rents / instability" (5%), and issues related to the "Three Lease Laws," "increases in property tax and comprehensive real estate tax," and "excessive regulation" (each 4%).

Regarding housing price expectations over the next year, 59% answered that prices will "rise," 13% said they will "fall," and 18% expected "no change." Ten percent withheld their opinion.

For housing rental prices such as monthly rent over the next year, 66% forecasted an increase, 7% expected a decrease, 17% anticipated no change, and 10% withheld their opinion. Similar to housing price expectations, the majority of respondents across most characteristics believed rental prices would "rise."

When asked about the impact of the Three Lease Laws (including the rent ceiling system and the right to request contract renewal) on South Korea's real estate market, 25% said it would have a "positive impact," 42% said "negative impact," 12% said "no impact," and 20% withheld their opinion.

Based on home ownership under their own or spouse's name, the perception that the Three Lease Laws would have a "negative impact" on the market increased from 32% among non-homeowners to 47% among single-homeowners and 59% among multi-homeowners owning two or more homes. The "positive impact" response was around 25% across non-homeowners, single-homeowners, and multi-homeowners alike.

Although pessimism about the market impact of the Three Lease Laws amendment was prevalent among many groups, half of those who positively evaluated the president, supporters of the Democratic Party, and progressives viewed the impact positively.

Regarding the target group for property tax rate reductions, 29% supported lowering rates for properties with a publicly announced price of 600 million KRW or less, 15% for those with 900 million KRW or less, and 28% supported lowering rates for all single-homeowners regardless of the publicly announced price. Ten percent opposed lowering property tax rates for single-homeowners.

A Gallup official explained, "Rather than focusing on specific publicly announced price criteria, it can be interpreted that the majority agree with lowering property tax rates for single-homeowners who actually reside in their homes."

This content was produced with the assistance of AI translation services.