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President Lee Jae Myung speaks during a Cabinet meeting at Cheong Wa Dae on Nov. 3. / Yonhap News Agency

President Lee Jae Myung said on Nov. 3 that actual housing transaction prices in major areas of Seoul have continued to fall, with some areas seeing surprisingly sharp declines, raising concerns about a potential housing market crash.

"Actual transaction prices in major areas of Seoul continue to fall. In some areas, they are falling at a surprisingly sharp rate, although that is not the case everywhere," Lee said. "Some are even beginning to worry about a price crash."

Lee made the remarks during a Cabinet meeting at Cheong Wa Dae that morning, noting that various views were emerging over the outlook for housing prices in the Seoul metropolitan area.

"We cannot predict the future with 100% certainty, but it is clear that housing prices in South Korea are abnormally high and that, for the country's future, we must shed the stigma of being a republic of real estate speculation," Lee said.

"I think one thing the government needs to do is properly explain objective data," he said. "Although statistical data are released regularly, I am somewhat concerned about whether the information is being communicated properly."

Lee said those who stand to benefit from rising housing prices appeared to be using only selected data to steer public opinion in one direction. He pointed to the recent rapid increase in apartment listings and sharp decline in transaction volume in Seoul.

"Wouldn't it be important to make accurate data widely available so that the public can access it directly?" he said.

Lee also stressed that stability is the most desirable outcome for real estate prices.

"Neither a sharp surge nor a sharp collapse is desirable," he said.

"Of course, things do not necessarily go according to the government's wishes. Nevertheless, one of the government's key roles is to enable people to trust the market and respond to market conditions based on accurate information," he emphasized.

                                                                                                             Hong Sun-mi