South Korean President Lee Jae-myung stated that even with the current difficulties, South Korea will not suffer a lost 30 years due to a real estate crisis.
From 2022 to 2025, approvals and permits in central Seoul have decreased dramatically, leading to a significant drop in housing supply, which is the biggest reason for short-term price instability. Medium- to long-term reasons include the concentration of housing in the Seoul metropolitan area, excessive lending that encourages real estate speculation, and an unfair tax system.
Shortly after the current government took office, the number of approvals and construction starts increased significantly, and the conversion of residential land for new developments and the residential use of existing land and buildings is accelerating, leading to a rapid increase in supply. Excess tax revenue will be used to accelerate the large-scale supply of public long-term rental housing for young people and the middle class.
