Lee bets on housing supply push to reverse approval rating slide

The government Thursday unveiled its largest housing supply package since President Lee Jae-myung took office, in a bid to calm public frustration over the real estate market. With Lee's approval rating falling to its lowest point since his inauguration, attention is focused on whether the sweeping supply measures can halt the slide and provide a springboard for recovery.

The package carries added significance given that Lee had repeatedly emphasized "supply" and "speed" as the keys to stabilizing the real estate market in the weeks leading up to the announcement.

At a real estate and stock market review meeting on Aug. 3, Lee said "housing supply shortfalls that have persisted since 2022 have created a supply cliff," and directed officials to "secure the maximum available housing supply so that as many homes as possible can be delivered as quickly as possible."

Then on Friday, he personally chaired a six-hour second housing policy review meeting, focusing on financial support measures and options for accelerating supply.

Having personally presided over two marathon sessions within just four days — both centered on expanding supply — the Aug. 13 package carries the symbolic weight of a policy Lee has directly steered from the top.

The timing of the announcement is also notable. A Realmeter survey conducted during the first week of August found Lee's approval rating for his handling of state affairs at 43.3 percent, the lowest since he took office. His disapproval rating climbed to 53.0 percent, surpassing 50 percent for the first time since he assumed power. (Margin of error ±2.0 percentage points at the 95 percent confidence level; response rate 4.0 percent. For details, see the National Election Survey Deliberation Commission website.)

Within and around political circles, controversy over real estate tax reform and rising housing prices have been cited as factors behind Lee's declining approval.

Ultimately, Lee faces the dual challenge of stabilizing the real estate market while delivering tangible improvements in everyday livelihoods that the public can feel. The inclusion of measures such as an expanded loan-to-value ratio for first-time officetel buyers reflects that calculus — an effort to win over younger buyers in their 20s and 30s who have grown increasingly frustrated with lending restrictions.

Whether the supply package will prove effective, however, remains an open question. Even if the government puts forward large supply figures, the critical issue will be how quickly the announced units can move from ground-breaking to move-in.

Amid all this, Lee holds a firm conviction that normalizing the real estate market is essential, even at the cost of unfavorable public opinion.

A ruling camp official said Lee "recognizes that some decline in approval ratings is unavoidable in the process of normalizing the real estate market," but added that "the president's firm belief is that stabilizing the market matters more than fixating on short-term polling numbers."