Seoul: The Lee Jae Myung administration is putting greater emphasis on housing supply as the red-hot property market in the wider Seoul area exposes the limits of taxes, tight lending rules and other measures aimed at curbing speculative demand, adding to public discontent over its real estate policy.
According to Yonhap News Agency, the government announced plans on Thursday to supply more than 230,000 additional homes in the Seoul metropolitan area, including about 100,000 units on newly designated housing sites. This initiative adds to a previously set goal of beginning construction on 1.35 million homes in the region by 2030, with the aim of alleviating the housing crisis.
The new housing measures come in conjunction with a property tax overhaul proposal revealed last week, which seeks to impose heavier tax burdens on owners of expensive homes and investment properties. This underscores the administration's two-pronged strategy to curb demand while simultaneously increasing supply.
The government is under mounting pressure to demonstrate that its repeated pledges will lead to affordable homes in the Seoul metropolitan area, home to over half of South Korea's 51 million population, rather than remaining mere headline targets. "The government will do its utmost to ensure a timely and sufficient supply of homes in areas where people want to live," declared Land Minister Kim Yun-duk, emphasizing the need to accelerate public projects alongside private-sector development.
Housing affordability has become a particularly sensitive political issue, especially among people in their 20s and 30s. High home prices and tighter borrowing rules have made it increasingly difficult for this demographic to achieve home ownership. The Korea Real Estate Board reports that Seoul apartment prices rose 11.9 percent in the first year following Lee's inauguration in May 2025, compared to a 4 percent increase nationwide.
The continuous rise in home prices has become a political burden for Lee, who has frequently pledged to stabilize the housing market. He has linked housing affordability to broader social challenges, such as the nation's low birth rate. Following the recent announcement, Lee urged the government to mobilize "all available means and resources" to address soaring housing prices, referring to the real estate issue as a "ticking time bomb" threatening livelihoods and the country's future.
Lee emphasized the necessity of a comprehensive approach, stating, "An effective combination of bold and rapid housing supply, a fair and reasonable tax system, and carefully tailored and robust financial policies is essential." Despite these efforts, Lee's approval rating has recently dipped below 50 percent in some polls, with public dissatisfaction over real estate policy being a significant factor.
However, the government faces challenges that have stymied previous administrations. While demand restrictions can be implemented relatively quickly, new housing developments can take years to materialize, requiring site designation, regulatory approvals, construction, and eventual occupancy. Acknowledging this, the land minister remarked at a parliamentary hearing that homes cannot be produced overnight "like bread," echoing a similar sentiment expressed by former Land Minister Kim Hyun-mee during the Moon Jae-in administration.
Amid the pressure to address the housing crunch, unconventional ideas have surfaced, only to meet with public backlash. Hwang Hee, a lawmaker from the ruling Democratic Party, recently suggested converting decommissioned buses into temporary housing for university students and other young people in Seoul, sparking a wave of online "bus house" memes and criticism from younger Koreans.
Against this backdrop, Thursday's package aims to accelerate public housing projects, develop underutilized public land, relax some greenbelt restrictions, and support private-sector construction. The emphasis on private development is crucial, as it accounts for more than 80 percent of housing supply in the capital area. The package also includes measures to ease redevelopment and reconstruction bottlenecks, expand financing support, and boost non-apartment housing construction.
Kim highlighted the importance of building market confidence, saying, "There may be skepticism over whether the government will actually carry out all of its plans, but many projects are already under preparation, and I believe their implementation will significantly help stabilize the housing market."