[Kim Minji, Digital Team Reporter]
**”Is it speculative for young generations to want new constructions… Every real estate policy distorts the market”**
Lee Jun-seok, leader of the Reform Party, criticized the government’s newly announced housing market stabilization measures on the 15th, stating, “The Lee Jae-myung government has declared itself Moon Jae-in 2.0,” and adding, “Every real estate policy they introduce distorts the market.”
In a Facebook post, Lee expressed, “The real estate policy, focused solely on taxes and regulations, is starting again.”
The government announced new real estate measures designating all of Seoul and 12 regions in Gyeonggi Province as regulated areas and land transaction permission zones, along with reducing the limit for housing mortgage loans.
Lee remarked, “There was a time when moving up in the housing market was a cultural norm. Even bearing acquisition and registration taxes and transaction costs, one could expect larger gains by moving up. Increasing the square footage was not only a family’s savings motive but also a marker of social achievement.”
He acknowledged, “Of course, the downsides of this phenomenon include high-leverage investments like gap investing,” adding, “Since we are no longer in an era of rapid growth, such methods should change.” He emphasized, “If you want to change the mindset of ‘trading up homes,’ you need to increase the supply that suits reality.”
Lee continued, “If it’s a ‘buy once and live forever’ home, wanting new construction and one’s desired form of living space is a natural change. Young generations living in non-apartment spaces wanting new apartments isn’t speculative greed. Wanting to move to a new apartment due to the hassle of car congestion every morning, minor scratches on your car without any notice, or being late to work due to parallel parked cars blocking the way is a perfectly rational desire.”
He criticized, “Yet, the Democratic Party refuses to acknowledge the lack of supply. Their policy focuses on taxes and loan regulation. Thus, every real estate policy they propose distorts the market,” and added, “The Democratic Party battles against the constitution, against economics, and against basic human desires. Why run politics this way?”