President Lee Jae-myung told Seoul Mayor Oh Se-hoon that the city must increase housing supply to prevent home prices from surging [1].
The directive comes as the capital faces significant price volatility. Stabilizing the housing market is critical for urban affordability and preventing economic instability caused by rapid real estate inflation.
Seoul's housing sale-price increase has been widening for four consecutive months [1]. Market projections indicate that this "triple-strong" price rise is expected to continue through July [1].
During the exchange, Lee emphasized that the government cannot allow price spikes to go unchecked. "Supply should be increased, not let house prices surge," Lee said [1].
Chief Spokesperson Kang Yoo-jung provided further details on the administration's approach to the crisis. She said the president intends to maximize the positive aspects of market growth while minimizing the negative impacts.
To implement these goals, the administration is coordinating across different levels of government. Kang said the president has instructed Prime Minister Han Seong-suk to review various opinions, and look for ways to increase housing supply [1].
The push for expanded supply aims to curb volatility by balancing the number of available homes with market demand. The administration is currently evaluating multiple strategies to ensure that new developments do not inadvertently trigger further price hikes during the construction phase.
“"Supply should be increased, not let house prices surge."”
The coordination between the presidency and the Seoul mayor suggests a centralized effort to manage the capital's real estate market. By focusing on supply-side solutions, the administration is attempting to use market fundamentals to lower prices rather than relying solely on regulatory caps, which have historically seen mixed results in South Korea.
