Seoul: President Lee Jae Myung has been vocal in his criticism of owners of multiple homes, issuing strong warnings on social media about the potential consequences of holding onto their properties. On Tuesday, he suggested that selling early would be more advantageous than delaying, and he criticized those who sympathize with such homeowners, implicating both the homeowners and media outlets that question the impact of excessive regulation.
According to Yonhap News Agency, former lawmaker Yoon Hee-sook has pointed out that owners of multiple homes are not a homogeneous group. For example, Democratic Party lawmaker Seo Young-kyo inherited a home in a regulated area, illustrating that forcing sales could negatively affect tenants who would be displaced. These homeowners contribute to the rental and presale markets, and demonizing them may reduce presales and ultimately harm housing supply. Yoon's critique of President Lee's approach as a "witch hunt" against these homeowners warrants careful reflection.
On the same day as President Lee's statements, the government indicated it might end the temporary suspension of increased capital gains taxes on owners of multiple homes. It also proposed allowing transactions in regulated areas, like Seoul, to extend payment and registration deadlines by three to six months if contracted by May 9. This potential policy shift suggests a move towards greater flexibility, acknowledging the complexities of real-world transactions and market dynamics. Regulators are advised to proceed cautiously to avoid restricting listings, which could adversely affect genuine end-users.
While President Lee is committed to stabilizing housing prices, legislative efforts supporting supply-side solutions have stalled. Of the 23 legislative measures needed to execute the September 2025 supply plan-targeting 270,000 homes annually in the Seoul area-only four have been approved by the National Assembly. Additionally, the January 29 initiative to construct 60,000 homes in the capital region faces hurdles, with ongoing disagreements over site locations between central and local government bodies in areas like Yongsan, Taereung, and Gwacheon. Persuading local authorities and residents about the viability of these supply measures is crucial to restoring market confidence.
The necessity to curb rising housing prices is undisputed. However, indiscriminately categorizing all multi-homeowners as speculators or dismissing valid concerns about inconsistent regulation's side effects is problematic. Instead of engaging in confrontational exchanges on social media, the administration should prioritize advancing stalled legislation and implementing balanced measures to address both demand and supply. Only through these efforts can the government achieve sustainable stability in the housing market.