Oh Se-hoon: "If House Price Increase Is Excessive, Reconsider Re-regulation of Land Lease System"

"Initial price increase expected
No abnormal signs detected
Closely monitoring for 3 to 6 months"

Seoul Mayor Oh Se-hoon addressed concerns that lifting the land transaction permit zone might fuel apartment price increases in the Gangnam area, stating, "A slight initial price increase was expected," but added, "If prices rise abnormally and excessively, we will consider reimposing regulations."

On the 10th, Mayor Oh made these remarks during a visit to 'Hongje Yuwon Hana Apartment,' the first pilot complex for improving the quality of aging public rental housing.

Mayor Oh explained that the price increase following the lifting of the land transaction permit zone is a temporary phenomenon. He said, "When a land transaction permit zone is lifted, it is expected that prices will initially rise slightly, like a compressed spring bouncing back," adding, "So far, it seems that the increase has not exceeded the expected level."

On the 10th, Seoul Mayor Oh Se-hoon visited Yuwon Hana Apartment, a pilot project site for quality improvement of old rental housing in Hongje-dong, Seodaemun-gu, Seoul, and inspected the surroundings of the newly renovated apartment. Photo by Yonhap News

He continued, "Looking at transaction volumes and the rate of increase, no significant abnormal signs have been detected yet."

Regarding media reports that housing prices in the Gangnam area have risen after deregulation, he explained, "There has been a tendency to get ahead of the facts," and "This is especially because the coverage has focused mainly on asking prices."

However, he hinted that re-regulation could be considered if prices rise excessively. Mayor Oh said, "If the price increase becomes abnormally excessive, we could consider reimposing regulations," adding, "We will closely monitor the situation for 3 to 6 months and determine what measures need to be taken going forward."

Meanwhile, on the 9th, the Seoul Metropolitan Government released explanatory materials analyzing that apartment transaction volumes in Jamsil, Samseong, Daechi, and Cheongdam areas increased by 9 transactions, from 78 before the deregulation to 87 after. They also explained that while there have been cases of price increases following deregulation, many cases of price decreases compared to the previous transactions have also been confirmed.