Oh Se-hoon: "Complexes Involved in Price Collusion Will Be Delayed to Later Priority for Reconstruction" (Comprehensive)

Seoul Mayor's Real Estate Market Stabilization Briefing on the 29th
"Strict Measures Against Speculative Demand Driving Up Housing Prices"
Mayor Oh, Who Emphasized 'Speed,' Warns While Mentioning 'Speed Adjustment'

"To normalize redevelopment and reconstruction, speculative demand will be severely punished. Even if the remaining term is not one year but one month, there will be no compromise."

Seoul Mayor Oh Se-hoon is making a statement on stabilizing the real estate market at the Seoul City Hall briefing room on the 29th. Photo by Kang Jin-hyung aymsdream@

On the 29th, Seoul Mayor Oh Se-hoon emphasized that before supplying housing through redevelopment and reconstruction, he will first eradicate disruptive activities in the real estate market. During his candidacy, Mayor Oh pledged 'speedy housing supply,' but amid recent rapid price surges in reconstruction complexes, he has mentioned not only designating land transaction permission zones but also 'speed control.'

On the same day, Mayor Oh held an emergency briefing at Seoul City Hall and issued a statement titled "Seoul City's Commitment to Stabilizing the Real Estate Market."

He said, "Since the inauguration of the Moon Jae-in administration, real estate policies focused solely on regulation have disrupted supply-demand balance, causing real estate prices to soar. In Seoul, where there is no land available for large-scale housing development, the only solution is redevelopment and reconstruction."

However, around the time of Mayor Oh's inauguration, expectations for deregulation increased, leading to rapid price hikes in major reconstruction complexes such as Apgujeong-dong in Gangnam-gu, Mok-dong in Yangcheon-gu, Yeouido in Yeongdeungpo-gu, and Sanggye-dong in Nowon-gu.

Mayor Oh views the participation of speculative demand in the market as the cause of such rapid price fluctuations and issued a warning. According to Seoul City's investigation, 15 cases of false reporting, 280 cases of cancellations after registration of reported prices, 300 suspected gift cases, and one case of price collusion have been detected recently.

He pointed out, "It is natural for expected profits from redevelopment and reconstruction to be reflected in market prices, but the recent phenomenon has gone beyond that. Abnormal cases such as false reports suspected of being non-genuine transactions, acts of merely raising asking prices, and price collusion are disturbing the real estate market."

To prevent this, Mayor Oh unusually mentioned 'speed control.' He said, "While adjusting the speed of redevelopment and reconstruction, we will mobilize all possible administrative power to first eradicate disruptive activities in the real estate market."

Following the designation of land transaction permission zones, Seoul City plans to continue on-site monitoring and transaction analysis of real estate actual transactions and respond strongly to cases judged as speculative transactions.

Mayor Oh stated that real transaction information is already being monitored and said, "For cases difficult to judge as normal transactions, we will take all measures to prevent speculation, such as requesting additional supporting documents according to relevant laws or referring judicial actions to related ministries and investigative agencies." He also warned that if disruptive activities in real estate occur frequently or if residents' representative meetings are involved, certain areas may be deprioritized in reconstruction and redevelopment projects.

Mayor Oh pledged, "There will be no realistic compromise that sacrifices Seoul's future and citizens' lives. Even if the remaining term is not one year but one month, I will make the right choice." He added, "We will provide corresponding incentives to redevelopment and reconstruction areas that respond to the basic principles of fairness and coexistence, but we will set an example by severely punishing speculative demand."

Seoul Mayor Oh Se-hoon is greeting before making a statement on stabilizing the real estate market at the Seoul City Hall briefing room on the 29th. Photo by Kang Jin-hyung aymsdream@

Some view that Mayor Oh's stance has shifted from 'speedy and prudent' housing supply toward prudence. However, Mayor Oh said, "There is no wavering in the housing supply policy of 'speedy but prudent, prudent but speedy,' and since this is the initial stage, the focus is on more prudently suppressing unnecessary price increases."

Mayor Oh's inauguration, advocating the activation of private maintenance projects, has led to conflicting supply policies between Seoul City and the central government. The government is promoting public-led housing supply expansion through public redevelopment and the 2.4 Plan.

Regarding this, Mayor Oh said, "The choice lies with local owners and stakeholders. Seoul City will observe for the time being and assist so that smooth housing supply can be achieved by watching the market's choice." He added, "In the second half of the year, stakeholders will decide what to choose at the major crossroads between public-led and private-led supply, and we will not forcibly induce private-led supply."

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