Oh Sin-hwan "2·4 Measures Increase Market Instability... Project Areas Must Be Disclosed"

More than Half of Seoul Housing Over 20 Years Old
Market Transactions Disappear Due to Cash Settlement
Cash Settlement Timing Should Be Delayed Until After District Designation and Development Announcement

[Asia Economy Reporter Naju-seok] Oh Shin-hwan, a former lawmaker who challenged the People Power Party's Seoul mayoral by-election candidate primary, pointed out that the government's '2·4 Supply Plan' is fueling instability in the housing market. Without revealing specific plans, the policy announced a 'cash settlement' approach for new contract volumes after the plan, which has increased confusion.

[Image source=Yonhap News]

On the 14th, Oh said, "The '2·4 Supply Plan' ambitiously announced by the Moon Jae-in administration is fueling instability in the housing market," and argued, "The government should clearly disclose the project areas to dispel market uncertainty early." He criticized, "The government said it would review about 222 sites for related projects, but did not disclose specific plans on where and when the projects would proceed."

Oh stated, "In effect, the entire Seoul city area has been designated as a 'public-led development project' zone, and citing 'blocking speculative demand,' the government announced a policy to 'cash settle' new contract listings after the 2·4 Supply Plan," adding, "Half of the housing in Seoul is over 20 years old. Among single-family houses, 89%, and among multi-family and row houses, 33% are old houses eligible for public-led development. It is natural that transactions stop and confusion spreads in old housing-dense areas with even a slight possibility of district designation."

He continued, "Because of this, multi-family and row house complexes with clusters of houses over 20 years old are seeing a spread of 'cash settlement' fears, causing new contracts to halt, while newly built apartments are experiencing a balloon effect with soaring asking prices," and urged, "The government must clearly disclose the project areas to dispel market uncertainty early. Also, the timing of applying cash settlements should be postponed to only contracts after district designation and development announcements to prevent constitutional disputes."

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