[Editorial] The President Must Not Cherry-Pick Housing Price Statistics Either

President Lee Jae-myung speaks during a Cabinet meeting at Cheong Wa Dae on the 3rd. Yonhap News Agency

Prices of high-end apartments in Gangnam are falling, while apartment prices across Seoul are rising. The housing market looks entirely different depending on which indicators one focuses on. President Lee Jaemyung was imprudent in emphasizing at a Cabinet meeting that actual transaction prices in major areas were falling “to a surprising degree.” Despite declines in Seoul’s three Gangnam districts, apartment prices in Seoul have risen for 90 consecutive weeks, and prices in the other 22 districts are still climbing. In the end, his remarks only added to market confusion.

But this controversy should not end with criticism of the president’s remarks. The reliability of real estate statistics has been called into question whenever administrations change. Weekly price indices provide a timely picture of market trends, but they are limited by their reliance on sample surveys. Actual transaction prices reflect real deals, but are affected by transaction volumes and delays in reporting. No single indicator can accurately describe the market as a whole. It is also necessary to consider whether a few distressed sales during a period of low transaction activity are representative of the entire market.

The government should conduct a fundamental review of the existing statistical system. It needs to make improvements so that the public can compare weekly and monthly price indices, actual transaction prices, transaction volumes, changes in the number of properties listed for sale, and trends in lease and monthly rental markets at a glance. The government should also disclose transparently how the statistics are compiled and what their limitations are, while strengthening independent verification. It should explain why the indicators differ and what market conditions each one reflects so that the public can make informed judgments.

Improving trust in statistics is directly linked to stabilizing housing prices. Statistics measure reality through scientific methods, but deciding which indicators to prioritize and how to incorporate them into policy involves political judgment. For that reason, statistics themselves must not become tools for political gain. This is one of the most fundamental principles of governing a country. If the diagnosis of the market is unstable, it is difficult to properly assess the direction and effectiveness of policy. Ultimately, what the government must demonstrate is not selective citation of statistics, but overall results that tangibly ease the public’s housing burden.

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