[Real Estate] Is the Oh Se-hoon Effect Real? Real Estate Rises

*This content was translated by AI.

The importance of elections in the real estate market has been demonstrated once again.

In the real estate market, it is already being evaluated that the Oh Se-hoon effect has been reflected.

Real estate, which had shown a stable trend until the the 3rd local government head election, suddenly turned into a bull market after the ruling Democratic Party of Korea suffered a defeat.

This is because People Power Party candidate Oh Se-hoon was elected as Seoul mayor (for his fifth term), making it inevitable for the Seoul real estate market to avoid direct conflict with the Lee Jae-myung administration's policies of real estate stability and comprehensive opposition, while securing the sustainability of private-led development.

According to data from Real Estate 114, national apartment transaction prices rose by 0.07% in the second week of June. Seoul rose by 0.08%, Gyeonggi and Incheon by 0.09%, showing a 0.08% fluctuation rate for the entire metropolitan area. In non-metropolitan areas, both the five major metropolitan cities and other local areas showed a slight stability of around 0.01%.

Based on the 17th provinces and cities nationwide, 10 areas saw an increase, one remained stable, and six declined, with rising areas being dominant. Regionally, the upward trend was prominent in Gyeonggi (0.10%), Daejeon (0.10%), Seoul (0.08%), Jeonbuk (0.07%), and Chungbuk (0.07%).

Apartment rental prices rose by 0.11%. Seoul recorded a 0.15% increase. Gyeonggi and Incheon rose by 0.11%, and the metropolitan area by 0.13%. The five major metropolitan cities and other local areas rose by 0.08% and 0.05%, respectively. Based on the 17th provinces and cities nationwide, 15 areas saw an increase, one remained stable, and one declined, showing a clear upward trend.

The monthly national rental price in May rose by 0.64%, marking the largest monthly increase in about five years since October 2021 (0.89%). The upward trend was strong, centered on Seoul and the metropolitan area.

Real estate experts stated, "While apartment transaction and rental prices are rising, centered on Seoul and the metropolitan area, the Lee Jae-myung administration is doing its utmost to announce tax reform (strengthening holding taxes on high-value homes) and additional supply expansion policies through its one-year anniversary press conference."

A current real estate official, B, said, "There are opinions that the Lee Jae-myung administration's real estate policies cannot be ignored as one of the reasons for the ruling party's defeat in this local election. The areas where the ruling party lost were southern Seoul and the adjacent Gyeonggi Province. It remains to be seen whether the Lee Jae-myung administration will intensify its real estate policies ahead of the next general election."

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*This content was translated by AI.