The article discusses the pressure from President Lee Jae-myung's administration on multiple-homeowners in Seoul's Gangnam area amidst rising apartment prices, highlighting both successes and ongoing challenges in the real estate market.
In a recent commentary by journalist Park Hyun in Hankyoreh, the focus is on the attempts by President Lee Jae-myung's administration to influence the real estate market in Seoul, particularly in the affluent Gangnam area. The article notes that under increasing pressure aimed at multiple-homeowners, there is a noticeable increase in the supply of apartments for sale. Lee has publicly refuted misleading reports from conservative and economic media sources regarding the real estate market through social media, pushing for more properties to be listed for sale by owners with multiple homes. Early indications suggest that the government's policies might be beginning to take effect in curbing the surge in housing prices.
However, Park expresses concern that the President's strategy appears to be overly focused on inducing sales from multiple-homeowners, which could be insufficient in addressing the underlying issues fueling price increases. Specifically, the trajectory of price hikes corresponds with the 'doll-doll 한채' phenomenon, where the allure of purchasing high-value single homes arose during previous administrations due to tax incentives aimed at discouraging multi-property ownership. This situation has culminated in Gangnam area properties reaching exorbitant prices, with some apartments selling for 5-6 billion won, significantly increasing house pricing trends. As the deadline for tax exemptions on multiple-homeowners nears, there is anxiety that this could further intensify the 'doll-doll 한채' phenomenon and escalate market distortions.
The commentary concludes by emphasizing that humans are responsive to economic incentives, and thus the government's reliance on tax policies is a reflection of these behavioral patterns. Current tax structures providing significant benefits to single-homeowners, particularly in terms of capital gains and long-term ownership deductions, have led to unintended consequences where high-value homeowners benefit disproportionately. Consequently, while these policies aim to stabilize housing markets and discourage speculation, the outcomes may reinforce existing inequalities within the real estate sector, calling for a reevaluation to attain a fairer housing market which better serves all citizens.
