South Korean President Lee Jae-myung has recently expressed strong intentions to rectify real estate speculation by issuing repeated directives concerning tax and loan regulations. As a result, expectations for rising property prices have dramatically diminished, prompting significant market reactions. Reports indicate that numerous properties throughout Seoul are being listed at substantially lower prices, creating an environment deemed by experts as favorable to buyers, thus establishing a 'buyer's market'.

The Bank of Korea's latest Consumption Trend Survey highlighted a notable decline in the housing price expectation index, with February's index dropping to 108, a sharp decrease of 16 points from January. This 100-point threshold signifies that the number of households anticipating price increases in one year has outnumbered those expecting declines. After a steady climb from 109 last July to 124 in January of this year, the index faced a severe plummet reminiscent of trends witnessed in July 2022, primarily due to rising market interest rates and government measures affecting multi-homeowners.

Government measures, including the notification of the cessation of the multi-homeowner capital gains tax exemption, and intense social media campaigns by President Lee emphasizing the responsibilities that come with owning multiple properties, have contributed to the shift in market sentiment. As a direct consequence, many listings in Seoul have been reported to be priced 30-40% below previous highs. Recent transactions illustrate this trend, such as a 51㎡ unit in Songpa-gu selling for 10 billion won, significantly lower than its previous high, indicating a shift in market dynamics and the pressures homeowners are facing amid the changing regulations.