오세훈 “부동산 정책 무게중심, 세금·실거주에서 ‘공급 확대’로 바뀌어야”

Seoul Mayor Oh Se-hoon urged the government on August 13th to shift its focus from "taxes and existing homeowners" to "ample and steady supply" in its action plan for Seoul metropolitan area housing. In a Facebook post, Mayor Oh praised the Ministry of Land, Infrastructure and Transport's announcement of a "swift housing supply plan to stabilize the real estate market" but noted that some of Seoul's calls for smooth redevelopments and rebuilding were incorporated only partially.

The ministry proposed supporting the construction of 234,400 housing units across the metropolitan area by 2030 and revising the criteria used to approve redevelopments. These included increasing the base value used to determine eligibility for loans on redevelopment joint ventures from the higher of a property's current and future value to a substantial amount. Mayor Oh said Seoul would allocate all administrative resources to ensure the smooth implementation of these plans.

However, he expressed regret that Seoul had not been given meaningful input into the decision-making process for these policies. He called for "ample and continuous consultation and cooperation between the government and the city" in the future. Mayor Oh also noted that issues such as the reduction in the rate for private redevelopment projects, the relaxation of restrictions on commercial redevelopment, and the reduction in the proportion of redevelopment rental housing were not included in the action plan.

He acknowledged that easing some of these regulations could alleviate some of the strain on the construction industry, but said it could not fully address the difficulties faced by developers. He emphasized that significant regulatory reforms were needed to boost the practical viability of projects and shorten their timelines. Mayor Oh also called for a comprehensive review of the "residence fixation policy" and the government's housing policy in light of the current rental housing market instability and skyrocketing taxes and utility fees. He argued that simply adding exceptions to policy guidelines would only exacerbate market turmoil.