9 out of 10 Real Estate Experts Say "Moon Administration's Real Estate Policy Was Inadequate"

"Next Government Should Strengthen Property Tax and Ease Capital Gains Tax"
Housing Price Outlook This Year: Seoul 'Slight Increase' vs Non-Capital Regions 'Decline'

The volume of apartment sales in Seoul has turned to an upward trend for the first time in eight months. According to the Seoul Real Estate Information Plaza, the number of sales transactions in Seoul in March was 937, a 16.4% increase compared to the previous month (805 transactions). This marks a rebound after seven consecutive months of decline from August last year (4,064 transactions) through February this year (805 transactions). It appears that the market, which had been frozen due to expectations of regulatory easing, is beginning to breathe again. A view of apartments from Namsan on the 11th. Photo by Moon Honam munonam@

[Asia Economy Reporter Kim Jin-ho] Nine out of ten real estate experts evaluated the Moon Jae-in administration's real estate policies over the past five years as 'inadequate.' They cited the significant rise in housing prices due to policies that failed to reflect the market as the main cause.

Regarding the new Yoon Suk-yeol administration, they suggested stabilizing housing prices through strengthening property taxes and easing capital gains taxes. As for this year's housing price outlook, Seoul is expected to see a slight increase, while non-metropolitan areas are anticipated to decline.

The Federation of Korean Industries and the Korea Real Estate Society released the results of the "Expert Opinion Survey on Housing Policies for the Next Government" on the 19th. The survey was conducted among 55 experts affiliated with the Korea Real Estate Society.

First, nine out of ten experts evaluated housing policies over the past five years as inadequate. Half of the respondents believed that housing prices rose over the past five years due to policies that did not reflect the market. In contrast, only three out of ten experts cited low interest rates and abundant liquidity as causes of the housing price increase.

Regarding the most inadequate housing policies, experts pointed to ▲the three lease laws including the rent cap system (24.2%), ▲strengthened regulations on reconstruction and redevelopment (21.1%), and ▲strengthened capital gains tax on multiple homeowners (18.9%). These were followed by ▲strengthened real estate loan regulations (10.5%), ▲increased housing holding taxes (9.5%), and ▲strengthened regulations on rental business operators (6.3%).

When asked about the most urgent housing policies the new Yoon Suk-yeol administration should implement to stabilize housing prices, responses were high for easing reconstruction and redevelopment regulations (25.7%), expanding public housing (20.8%), and temporarily easing capital gains tax on multiple homeowners (20.8%). Next were lowering housing holding taxes (10.9%), reforming the rental business operator system (9.9%), and expanding real estate mortgage loans (5.9%).

More than half (58.2%) of real estate experts expect housing prices in South Korea to stabilize after two years. Regarding the mid- to long-term direction of housing-related taxation, more than half (54.5%) responded with 'strengthening property taxes and easing capital gains taxes.' Real estate experts agree that the next government should focus on deregulation, expanding supply, and improving housing-related tax systems to stabilize housing prices and promote residential stability for the public.

Six out of ten real estate experts expect Seoul housing (apartments, etc.) sales prices to rise this year compared to last year. The most common forecast (27.3%) was an increase between 0% and 5%. For non-metropolitan housing (apartments, etc.), the outlook was predominantly for a decline compared to last year, with the most frequent response (30.9%) expecting a drop between 5% and 10%.

Yoo Hwan-ik, head of the Federation of Korean Industries' Industry Headquarters, stated, "Economic and social side effects are occurring due to housing instability caused by recent housing price increases," and suggested, "To ensure residential stability for the public, the next government should normalize the private housing market through deregulation and expand housing welfare facilities for low-income citizens through public investment."

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