[One Month Before the Presidential Election Pledge Analysis] ① Real Estate... Lee "Expand Supply" · Yoon "Easier Loans", Ahn Cheol-soo and Sim Sang-jung Also Focus on 'Supply'
Presidential candidates attending a broadcast debate pose for a commemorative photo Photo by Yonhap News
[Asia Economy Reporter Baek Kyunghwan] After the March presidential election, the real estate market is expected to see a surge in supply volumes or a large-scale removal of loan regulations. Both major party presidential candidates have presented supply expansion and loan regulation easing as their top priorities to win over real estate public sentiment, making market changes inevitable. With the election just a month away, the competition over pledges among candidates from each party, including on real estate, is expected to intensify further.
Lee Jae-myung, the Democratic Party presidential candidate, named large-scale supply expansion as his number one policy priority during the first presidential candidate TV debate on the 3rd, while also pointing to the protection policies for rental business operators as a cause of failure. He argued that the current government’s provision of various financial benefits in taxation and loans to rental business operators led to the proliferation of multi-homeowners and ultimately provided a pretext for soaring housing prices.
The message of ‘supply’ was clear. Candidate Lee stated, "A policy for large-scale supply expansion will be the top priority," adding, "We will first implement a large-scale supply policy to stabilize the housing market so that the public can achieve their dream of owning a home." He emphasized, "Housing problems should be solved by a market where supply and demand operate appropriately, but there has been an aspect of excessive supply suppression."
On the other hand, Yoon Seok-youl, the People Power Party candidate, placed more weight on deregulation. Candidate Yoon said, "Whether it is a home to own or a rental house, we need to remove the systems that hinder finding a home," and added, "First, I will ease loan regulations so that it becomes easier to get loans to buy a house." In particular, Yoon proposed even revising the three lease laws (Contract Renewal Request System, Rent Ceiling System, and Rent Reporting System). These laws were introduced in August 2020 by the Democratic Party passing them alone in the National Assembly despite fierce opposition from the opposition party, aiming to stabilize tenants’ housing, but ultimately caused market instability such as rent price increases.
However, Candidate Lee has also proposed institutional improvements such as temporary easing of capital gains tax on multiple homes, and Candidate Yoon has pledged additional supply of one million housing units in first-phase new towns.
Ahn Cheol-soo of the People’s Party and Sim Sang-jung of the Justice Party also emphasized supply expansion. Candidate Ahn said, "The goal of real estate policy is housing stability," and introduced a pledge to raise the homeownership rate, currently at 61%, to the 80% range by the end of his term.
Candidate Sim stated, "Stabilizing housing prices is the most urgent," and said, "At the center of supply policies, we must place the 44% of the population without homes, and I will bring about political consensus on this."
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