"Completely Ignoring Market Mechanisms...
A Surge in 'Jeonse Refugees' Expected"
"A 'Pointing Out Where to Buy' Policy...
31 Failures Out of 31 Attempts"
On October 15, the People Power Party strongly criticized the government's third real estate policy package, calling it a "complete deprivation policy for youth and working-class housing."
Jang Donghyuk, leader of the People Power Party, held an emergency press conference at the National Assembly on the same day and stated, "Psychology is extremely important in real estate prices. Every time the left-wing administration announces a policy, they only instill the belief that real estate prices will inevitably rise."
Jang Donghyuk, leader of the People Power Party, is speaking about the real estate policy announced by the government on the same day during a press conference held at the National Assembly on the 15th. Photo by Yonhap News
Jang pointed out, "The Lee Jaemyung administration is announcing real estate policies on average once a month. The frequency is an issue, but the content is even more serious," adding, "They keep repeating stronger regulations that completely ignore market mechanisms and the actual needs of the people."
He continued, "By drastically reducing the mortgage loan-to-value ratio and applying the DSR to jeonse loans, the path to homeownership for real demand groups such as youth, working-class citizens, and newlyweds will be blocked, and a real estate market catering to the wealthy will emerge. In addition, with the obligation to reside in properties within land transaction permit zones, a surge in 'jeonse refugees' is inevitable."
Jang emphasized, "With indiscriminate regulations, it is impossible to control housing prices," and warned, "The specter of another real estate price surge is looming." He further criticized, "It will also be difficult to avoid the balloon effect. Funds will flow into urban areas without regulations, leading to a counterproductive rise in housing prices nationwide. This is nothing more than a policy that points out where to buy in advance."
He went on to label the government's real estate policy as "Moon Jaein administration season 2, housing price surge season 2," and criticized it as "a policy that ruins, not controls, housing prices." He added, "The core of the problem lies in the left-wing administration's distorted perception, seeing real estate policy not as a pillar of the economy but as a game of speculation and hot-potato. This will result in 31 losses out of 31 attempts."
Jang also called for a shift toward market-friendly housing policies, expansion of private-sector-led housing supply, deregulation of reconstruction and redevelopment, and the broadening of best practices such as fast-track integration.
On the same day, the government announced a real estate policy designating all of Seoul and 12 regions in southern Gyeonggi Province as land transaction permit zones, regulated areas, and speculative zones, imposing a residency requirement for home purchases. In addition, the mortgage loan limit was lowered to 400 million won for homes priced between 1.5 billion and 2.5 billion won, and to 200 million won for homes priced over 2.5 billion won.
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