'Real Estate Normalization'... President Lee: 'You'll Understand Once This Period of Patience Passes'

"For Now, We're Holding On; the People Sovereignty Government Gets Things Done"
Reaffirms Policy Resolve as Gangnam Home Prices Fall

On October 31, President Lee Jaemyung reiterated his determination to pursue policies to normalize asset markets, including real estate, saying, “For now, we are holding on.” With home prices in Seoul’s Gangnam area continuing to decline amid the government’s lending and tax restrictions, he reaffirmed his resolve to maintain the current policy direction without being swayed by short-term market conditions.

President Lee Jae-myung listens to remarks by attendees at the second plenary meeting of the Regulatory Rationalization Committee at Cheong Wa Dae on Oct. 23, 2026. Yonhap News.

That day, President Lee wrote on X (formerly Twitter), “We are holding on for now as we face the difficult road toward normalizing asset markets. Once this period of patience passes, you will come to understand. The People Sovereignty Government gets things done!”

Along with his post, President Lee shared an X post with an attached article reporting that licensed real estate agents in the Gangnam area had given a positive assessment of the government’s real estate policies. The article said agents in Seoul’s Gangnam and Seocho districts viewed the current government’s real estate policies as a strategic approach that takes market characteristics into account. It also included the view that putting downward pressure first on high-priced homes in the Gangnam area could, after a time lag, help stabilize home prices in other parts of Seoul.

Apartment prices in the Gangnam area have in fact continued to fall. According to the weekly apartment price trends for the fourth week of October (as of October 26), announced by the Korea Real Estate Board on October 29, apartment sale prices fell 0.38% in Seoul’s Gangnam District, 0.35% in Seocho District, and 0.22% in Songpa District from the previous week. Prices have declined for 12 consecutive weeks in Gangnam and Seocho and for eight consecutive weeks in Songpa.

However, apartment sale prices across Seoul rose 0.09% over the same period. Prices continued to rise in areas with concentrations of lower- and mid-priced apartments, including Seongbuk District (0.39%) and Seodaemun District (0.36%), resulting in diverging price trends between the Gangnam area and other parts of the city.

The government has sought to curb speculative demand through lending restrictions, tax reforms, and the land transaction permit system, while also pursuing an expansion of housing supply. However, rising prices in Seoul’s outer districts and instability in the jeonse and monthly rental markets remain challenges that need to be addressed.

This content was produced with the assistance of AI translation services.