"House Prices Soar Overnight, Who Works Hard Anymore?"... Civic Groups Protest

Real estate price board at a brokerage office in Mapo-gu, Seoul
[Photo by Yonhap News]

[Asia Economy Reporter Moon Jiwon] Despite the government's policy to expand housing supply, apartment prices in major areas nationwide, including the Seoul metropolitan area, continue to soar, leading to growing backlash from civil society.

On the afternoon of the 3rd, the 'Citizens' Action for Housing Price Normalization' held a rally near Yeouido Station in Seoul, raising critical voices against the government and ruling party, saying, "People in their 20s and 30s, who are taking their first steps into society, have had their dreams of owning a home taken away."

They emphasized, "In the reality of South Korea where housing prices skyrocket overnight, even ordinary citizens are driven to gap speculation. Who would want to work hard when, despite a lifetime of diligent work and frugal saving, they cannot own a home until they die?"

They also pointed out the recent moves led by the Democratic Party of Korea to ease comprehensive real estate tax and loan regulations.

The group stated, "They encourage the frustrated and angry younger generation to buy homes at inflated prices by increasing loans. They tempt people to live as 'bank slaves' until death by buying houses that speculators profit tens of billions from."

They continued, "Eventually, the Democratic Party passed policies to reduce comprehensive real estate tax and capital gains tax for wealthy homeowners," adding, "They openly declared that winning votes from wealthy homeowners would be their election strategy. The biggest corruption of the Moon Jae-in administration was the soaring housing prices."

The government has recently mentioned the possibility of 'housing price declines' and is making efforts to curb overheating in the real estate market, but apartment prices continue to rise.

According to the Korea Real Estate Board, as of the 28th of last month, apartment prices in the Seoul metropolitan area rose 0.35% compared to the previous week, maintaining the highest rate of increase ever recorded. In particular, Incheon rose 0.57% this week alone, marking the highest increase in 9 years and 1 month.

This is interpreted as a result of actual homebuyers moving due to the perception that prices are relatively cheaper compared to Seoul, along with strong buying demand fueled by transportation benefits such as the Metropolitan Area Express Train (GTX), continuing an unprecedented surge.

Jeju Island, where apartment prices rose 10.42% in the first half of this year, is also skyrocketing due to the 'balloon effect' concentrated by its status as a non-regulated area. Investment in low-priced homes under 100 million won is increasing, and the rising trend in housing prices in Busan and some areas of Gangwon Province, which are also non-regulated areas, is significant.

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