Lee Kwangsu: "Trend Toward Investing in a Single Prime Property... Possibility of Housing Price Surge"

by Lee Kyungho

Published 19 Aug.2025 08:42(KST)

A view of apartment complexes in downtown Seoul from Namsan, Seoul. Photo by Asia Economy

Lee Kwangsu, CEO of Kwangsu Real Estate Agency, recently warned of the possibility of a sharp surge in housing prices, noting that while the number of multi-homeowners has decreased in the real estate market, the number of "multi-homeowners for investment purposes" has actually increased, with a growing trend of concentrating investments in a single high-value property.

Appearing on MBC Radio's "Kim Jongbae's Focus" on the 18th, Lee said, "It is true that the number of multi-homeowners has gone down, but what's important is that the number of homes held for investment purposes has actually increased." He explained, "To put it simply, there are people living in regional areas who own apartments in Seoul or the greater metropolitan area. They are technically without homes in their local area, but they own properties in Seoul or the metropolitan area for investment purposes." He added, "These individuals are officially counted as single-homeowners and not as multi-homeowners, but the number of people holding homes for investment purposes has actually increased." He continued, "In the past, people would invest in several apartments, but now the trend has shifted toward focusing on a single, expensive apartment."

Regarding real estate policy, Lee stated, "The most important thing is to implement policies that increase the number of households who actually reside in their own homes." He continued, "Currently, if a household owns two homes, regardless of where they are or whether they are held for investment, they are eligible for capital gains tax reductions and long-term ownership tax breaks. We need to move beyond this approach and focus on increasing the number of people who actually live in the homes they own." He also pointed out, "With the rise in single-person households, many are unable to afford the current high housing prices." He emphasized, "Rather than simply increasing the supply of apartments, it is crucial to supply homes at prices people can actually afford-meaning apartments that are within the income range of the middle class and below." The key, he said, is not just increasing the absolute number of apartments, but increasing the supply of apartments at affordable prices.

When asked by the host whether there is still a risk that housing prices could surge again, Lee replied, "I believe there is a possibility." He explained, "Policies need to be continuously developed, but the recent statistics and news about the increase in the number of households without homes in Seoul were already released on November 18, 2024. Regarding whether there is an intention behind these news reports suddenly being highlighted, I do see it that way."