Hong Ik-pyo: "Oh Se-hoon’s Pledge to Ease Reconstruction Regulations Drives Apartment Prices Up"

[Image source=Yonhap News]

[Asia Economy Reporter Park Cheol-eung] Hong Ik-pyo, chairman of the policy committee of the Democratic Party of Korea, pointed to Mayor Oh Se-hoon's recent declaration to ease reconstruction regulations as the main cause of the recent apartment price surge.

On the 22nd, at the party's policy coordination meeting, Rep. Hong said, "Seoul City announced yesterday that it would designate major reconstruction and redevelopment areas as land transaction permission zones to block speculative demand," adding, "In the second week of April, apartment prices in Seoul had already risen by 0.07% compared to the previous week, and the Korea Real Estate Board pointed out that the cause of this increase was the expectation of regulatory easing."

He continued, "During the election period, Mayor Oh Se-hoon called for speedy supply and declared the easing of reconstruction regulations within a week, which is analyzed as a major cause."

Rep. Hong also said, "In fact, the increase in areas such as Nowon-gu, Yangcheon-gu, Gangnam-gu, and Yeongdeungpo-gu was up to twice as much," adding, "Ultimately, Seoul City decided to designate four major reconstruction and redevelopment areas?Apgujeong, Yeouido, Mokdong, and Seongsu?as land transaction permission zones to block speculative demand. There is concern that this price increase could spread not only to redevelopment areas in Seoul but also to the metropolitan area and other provinces."

He then stated, "The Democratic Party and the government will work hard to ensure that the real estate market, which has been stabilizing with difficulty since the 2.4 measures, does not become unsettled."