Seoul Mayor urges deregulation to boost housing supply, criticizes tax hikes

Seoul Mayor Oh Se-hoon has called for a fundamental shift in the government's real estate policy, advocating for deregulation to boost housing supply and an end to what he terms "violent tax increases."

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We must improve regulations that hinder housing supply and stop violent tax increases.

Speaking at a meeting of the People Power Party's floor leaders, Oh highlighted persistent obstacles to urban regeneration and reconstruction projects. "Key regulations such as restrictions on the transfer of union member status, floor area ratios, and the proportion of rental housing remain," he stated, emphasizing the need for bold regulatory improvements to enhance project viability and speed.

Oh specifically criticized policies that he believes destabilize the rental market and increase the burden on citizens. He argued that reducing tax benefits for long-term homeowners and increasing tax burdens for those unable to live in their own homes due to circumstances amounts to a de facto property tax hike. "We must stop these violent tax increases that shift the responsibility for policy failures onto the public," he asserted.

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Key regulations such as restrictions on the transfer of union member status, floor area ratios, and the proportion of rental housing remain.

The mayor stressed that the solution lies in increasing supply, not taxes. "To create sufficient supply in Seoul, redevelopment and reconstruction must proceed properly," he said. Citing data showing that redevelopment and reconstruction projects have led to a net increase of 27.4% and 44.2% in housing units, respectively, Oh questioned the Democratic Party's commitment to housing supply if they ignore such statistics.

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Reducing tax benefits for long-term homeowners and increasing tax burdens for those unable to live in their own homes due to circumstances amounts to a de facto property tax hike. We must stop these violent tax increases that shift the responsibility for policy failures onto the public.

Seoul has set a goal to commence 310,000 housing units through 253 urban regeneration projects by 2031. The city is actively managing the progress of each project to accelerate supply. "As Seoul speeds up on the ground, we hope the National Assembly will also remove unreasonable regulations and open the path for supply," Oh requested.

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To create sufficient supply in Seoul, redevelopment and reconstruction must proceed properly.