Lee vows housing market normalization

May 06, 2026, 10:04 am

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President Lee Jae-myung speaks during a senior aides meeting at the presidential office. / Yonhap

Lee Jae-myung said on May 6 that the normalization of the real estate market is an inevitable trend, stressing the government’s commitment to stabilizing housing prices and curbing speculative demand.

In a post on X (formerly Twitter), Lee wrote, “Like the cleanup of illegal facilities in valleys and the normalization of the stock market, everything in South Korea is returning to normal. Property always rises? That myth no longer exists.”

His remarks come as market sentiment shifts, with expectations for housing prices increasingly turning from growth to decline. According to recent surveys cited by Lee, while most experts and real estate agents had predicted price increases in January, the proportion expecting declines rose significantly by April.

Among real estate agents, more than half now anticipate falling home prices. Experts appear divided, with forecasts split between increases and declines.

Analysts say the shift in sentiment reflects government policies, including the planned end of tax relief on capital gains for multiple homeowners and continued signals to expand housing supply.

Earlier, presidential chief of staff for policy Kim Yong-beom said in a briefing that the government’s announcement to end the temporary tax relief had already contributed to market stabilization, with an increase in housing listings in key areas such as Seoul’s Gangnam districts.

Kim added that after the tax relief expires on May 9, the government will refine tax policies based on different categories of homeowners, including multiple property owners, non-resident homeowners holding property for speculative purposes, and owners of ultra-high-value homes, while accelerating housing supply measures.

#Lee Jae-myung #real estate policy #housing market #property prices