Lee shared on X, formerly Twitter, an article reporting a surge in apartment listings in Gangnam, Seocho and Songpa districts, writing that "escaping the real estate republic is a national task for South Korea" and that "the Lee Jae-myung government will keep its promise to escape the republic of real estate speculation."
Citing data from property big-data provider Asil, the article said apartment sale listings in the three Gangnam-area districts totaled 27,590 as of Oct. 1, more than 10,000 higher than the 17,528 a year earlier. Compared with 22,182 in August, when the government announced its tax overhaul plan, listings rose by 5,408, or about 24%, in just two months. Seocho climbed 25.2% to 9,555 from 7,630, while Songpa and Gangnam rose 24.6% and 23.6%, respectively. The article noted, however, that buying demand has not kept pace with the increase in listings.
Lee pointed to past supply cuts as the short-term cause of such housing market instability. "A sharp drop in permits from 2022 to 2025, centered on Seoul, led with a time lag to a steep decline in housing supply, and that is the biggest cause of short-term price instability," he said.
He said his government has since increased permits and construction starts and is accelerating new land development as well as the conversion of existing sites and buildings to residential use, stressing that supply will expand going forward. The remarks were read as signaling an intent to pull forward, as much as possible, supply schedules that translate into actual move-ins, in order to blunt expectations of price gains driven by a supply shortage.
Lee also cited concentration in the greater Seoul area, excessive lending that encourages housing speculation and an unfair tax system as medium- to long-term causes of the property problem. In August, he said he would "root out ruinous real estate speculation by any means necessary," pledging to mobilize all national capabilities for financial and tax reform and expanded housing supply. His latest comments reaffirmed plans to overhaul, over the medium to long term, concentration in the capital region, excessive household lending and the tax framework governing property holdings and transactions.
"Through balanced development policies such as relocating administrative agencies and public enterprises to the provinces and launching the three mega and seven seed projects centered on the regions, we will ease concentration in the capital area, and we will also carry out adjustments to household debt, which is among the world's highest, and tax reform consistent with tax justice," Lee said. He also plans to use excess tax revenue to deliver large volumes of long-term public rental housing for young people and the middle class at an early date.
Lee specifically noted the share of real estate in South Korean household assets and the level of household debt, urging the public to "look closely at the flow of funds toward productive finance and at the trajectory of global benchmark interest rates." The comment amounted to a warning against investment behavior that takes on excessive debt on the assumption of further price gains. In August, he similarly cautioned against expectations of continued price increases, citing the possibility of higher benchmark rates ahead.
Separately, Lee shared a post arguing that Seoul home prices are unstable because the government's property policy is a mess, saying that "it is hard to see quick improvement from a few short-term fixes." He said, "Setting aside conservative governments that encouraged real estate speculation, every democratic government tried to curb speculation but failed to produce results," adding that "one cause was probably the failure to push through reform measures in the face of resistance and backlash." He continued: "Curbing real estate speculation and stabilizing prices is very difficult, but it is not impossible. Even if you are disappointed, please be patient and wait a little longer. Judge us by the results."
