Seoul apartment prices have risen for 86 consecutive weeks, surpassing the previous record of 85 weeks set during the Moon Jae-in administration, according to Seoul Mayor Oh Se-hoon. In a public statement issued on Facebook on Sept. 13, Mayor Oh called for a full-scale overhaul of the government’s real estate policy, arguing that current measures have failed to stabilize the housing market and are instead driving up costs for younger generations and ordinary citizens.
Seoul Housing Prices Surpass Prior Administration Records
According to data highlighted by Mayor Oh, the duration of the housing price rise has broken historic records. The upward trajectory has now extended to 86 straight weeks, eclipsing the 85-week stretch recorded under the Moon Jae-in administration.
Beyond the duration of the streak, Oh noted that the intensity of the price growth is accelerating rapidly. Reporting indicates that the cumulative monthly apartment sales price growth rate during the first year of the Lee Jae-myung administration reached 14.73%. That figure outpaces similar early-term metrics from past administrations, exceeding the 11.68% recorded under the Roh Moo-hyun administration and the 9.41% under the Moon Jae-in administration.
The Price-Leveling Phenomenon in Outer Districts
While government officials have pointed to stabilizing figures in select upscale areas such as Gangnam, Seocho, and Songpa districts, Mayor Oh cautioned that these metrics mask broader market pressures. Instead, a “catch-up” or price-leveling phenomenon is actively driving up costs in non-Gangnam areas and outer districts.
Data cited from the regional reports outline notable spikes between June and August. While Seoul apartment sales prices rose by an average of 3.5% during this period, specific outer districts saw much sharper increases:
- Dongdaemun District: 5.8% increase
- Geumcheon District: 5.4% increase
- Dobong, Gangseo, and Gangdong Districts: 4.7% increase
- Nowon District: 4.3% increase
A parallel surge is occurring within the jeonse (lump-sum housing deposit lease) market. While the Seoul average for jeonse rose 3.5% between June and August, working-class and youth-heavy districts experienced significantly higher jumps, including Seongbuk District at 6.0%, Jungnang District at 5.5%, Nowon and Guro districts at 5.0%, Gangbuk District at 4.8%, and Seodaemun District at 4.7%.
Impact of Loan Regulations and Tax Policies
Mayor Oh criticized the central government’s reliance on strict loan regulations and tax policies, asserting that these mechanisms have backfired. By suppressing demand in central locations through lending restrictions, the policy pushed buyers toward mid-to-low-priced homes on the outskirts of the city.
This forced migration of demand has driven up both sales and jeonse prices in outer regions, according to Oh, who characterized the government’s approach as being bound by a “dogma of actual residence” and a “dogma of tax omnipotence.” Rather than cooling the market, these rules have systematically raised the baseline price floor across the entirety of Seoul.
Consequently, newlyweds and younger residents attempting to purchase entry-level homes on the urban periphery are facing renewed obstacles. At the same time, long-term retired residents who own a single home are expressing anxiety over mounting tax burdens that threaten to displace them from neighborhoods they have inhabited for decades, Oh stated.
Call for a Three-Axis Policy Reexamination
Concluding his evaluation, Mayor Oh urged national policymakers to look past isolated indicators showing moderated growth in select affluent neighborhoods. He emphasized that true housing stability cannot be claimed if citizens are continuously priced out of their communities.
Oh formally called for a comprehensive reexamination of the government’s real estate strategy across its three core pillars: housing supply, lending regulations, and taxation.