"Without New Supply in Gangnam, Housing Price Stabilization Is Difficult"... Oh Sehoon Prepares Supplementary Measures [Real Estate AtoZ]

Seoul Mayor Oh Sehoon is inspecting the demolition site of Baeksamaeul in Nowon District on the morning of the 9th. Seoul City

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Seoul Mayor Oh Sehoon commented on the September 7 real estate policy, stating, "Unless there are groundbreaking measures to significantly increase new housing supply in the Gangnam area, which is the epicenter of the sharp rise in housing prices, it will in fact be difficult to truly stabilize the housing market."

On September 9, at the Baeksamaeul redevelopment project site in Nowon District, Seoul, Mayor Oh spoke to reporters and explained, "The Seoul Metropolitan Government is preparing to announce supplementary measures."

He added, "Seoul is the area that drives the most significant increases in real estate prices, but it does not seem that this round of measures includes any actions that would bring about such major changes in Seoul."

He continued, "Based on the work we have been preparing and the efforts we have made so far, we are putting together a feasible roadmap to serve as a maximum restraint on rising real estate prices. The city will be announcing its position soon."

Regarding media reports that there was no communication and a lack of coordination between the Ministry of Land, Infrastructure and Transport and the Seoul Metropolitan Government prior to the announcement of the measures, he said, "That is not true. While there may not have been as active an exchange of opinions as under the previous administration, there was certainly communication at the working level, including requests for opinions."

Previously, the government announced a plan to expand housing supply by starting construction on 270,000 new homes annually in the Seoul metropolitan area by 2030, for a total of 1.35 million homes.

The measures also included a complete shift to having Korea Land and Housing Corporation (LH) directly implement public housing sites, which are a key means of supply in the metropolitan area. In addition, the plan calls for partially tightening the loan-to-value (LTV) ratio for mortgages in regulated areas and expanding the authority to designate land transaction permit zones.

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