[Initial Perspective] Will House Prices Fall If the Media Goes Quiet?

Furuya Tsunehira, a Japanese critic and writer, was a typical "Netouiku" who published a "hate Korea" book titled "Now Korea Does Not Exist." One of the facts he revealed while expressing regret about his past was that "Japanese publishers would publish any manuscript as long as it dissed Korea." There was even a large corporation-affiliated publisher that had pre-decided the title as "Korea, the Most Hated Nation in the World," and if one refused, the article could not be published.

Recently, complaints from the government side have been frequently heard across various sectors such as politics and economy. The claim is that the media is inciting social and market instability. Although the term "some media" was used, it was said that there are continuous inflammatory articles that distort the government's policy intentions, even foment anxiety and sow discord.

The real estate market is no exception. Recently, a national research institute released a controversial study showing that the rise in apartment prices in Seoul under the current government was largely influenced by media coverage. The report stated that media reports on record-high apartment prices affected real estate expectations and price increases. Toward the end of the report, it said, "In transactions in Seoul and the Gangnam 3 districts, the impact of media coverage related to record-high prices on individuals' expectation formation is greater than the record-high prices themselves, and the statistical significance and magnitude of this impact have increased since 2017," adding, "This suggests that media coverage also plays an important role in shaping expectations, especially in markets with high investment demand."

At first glance, this may seem reasonable. Under the current government, articles reporting soaring housing prices have been incessant, and criticism of real estate policies has also been continuous. Over the past four years, some people may have felt anxious due to such reports and managed to secure funds to actually purchase their own homes.

However, the chronological order is different. The record-high apartment prices came first. This means that apartment prices did not surpass records after the reports. In fact, private statistics show that the average price of apartments in Seoul nearly doubled over the four years of the current government. Although the figures from the national research institute are lower, they also show an upward trend.

While real estate policies have been inconsistent and out of sync, the situation has become one where all remedies are ineffective, and a "lame duck" phenomenon has already appeared in the market, where people no longer trust the government. In fact, it is now confusing whether the government has announced its 26th or 27th real estate measure. Instead of complaining that the media disses the government, thorough reflection and bold reforms must come first.

If media reports have fueled expectations and created anxiety, I want to ask the opposite. If the media remained silent, would the soaring housing prices stop rising and start falling? The controversy surrounding the amendment to the Media Arbitration Act is similar. While acknowledging the harm caused by "fake news," is that really the most important issue for people's livelihoods right now? The slogan of Bill Clinton, the Democratic candidate who overturned an unfavorable situation in the 1992 U.S. presidential election, is still legendary even after more than 30 years. It is "It's the economy, stupid." Currently, the most tangible and serious problem for ordinary people might be real estate. So please, let's first solve the "housing problem" that we live with and must continue to live with.