Hong Ji-sun, the Minister of Land, Infrastructure and Transport, recently stated that the rise in home prices in Seoul is slowing, indicating hopeful signs for market stability.
On November 5, Hong noted on his X (formerly Twitter) account that "the upward trend in Seoul home prices has been slowing since July based on housing price trend surveys and since June according to actual transaction indices." He added that the Korea Real Estate Agency's weekly trend survey shows a continued decline, particularly in the Gangnam area, and that the KB Apartment Sales Price Index has also shown a reduced rate of increase across Seoul.
He identified the accumulated supply shortage as the primary source of anxiety in the housing market, stating, "While demand for housing continues due to factors like marriage and the rise of single-person households, supply in Seoul and the metropolitan area has not yet met this demand." He emphasized, "The solution is simple: we need to build more homes," asserting that increased confidence in supply would reduce demand fluctuations caused by anxiety.
Hong also reaffirmed the government's plans to expand housing supply. He explained that to reverse the decline in permits and construction that has persisted since 2022, three supply measures have been implemented, aiming to provide over 1.5 million homes in the metropolitan area over the next five years. He noted that on October 29, an additional 104,000 new housing units were announced for areas adjacent to Seoul.
The number of public sector construction starts is expected to rise from 16,000 units in 2023 to over 60,000 this year, with total construction starts in the metropolitan area projected to exceed 200,000.
Hong urged cooperation from the Seoul city government, stating, "The supply within Seoul is a matter that the Ministry of Land and the city must address together." He added that all available measures would be mobilized, including revitalizing redevelopment and reconstruction projects, expanding supply in the Yongsan International Business District, accelerating urban public housing complex projects, and identifying additional sites.
* This article has been translated by AI.
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