Seoul Mayor Oh warns of 'upward equalization' in city housing prices

Seoul Mayor Oh Se-hoon said Monday that housing prices in the capital are undergoing "upward equalization" rather than a simple "flattening," expressing concern over a sustained price rise in the city's outer districts. He also said he plans to meet newly appointed Minister of Land, Infrastructure and Transport Hong Ji-sun soon to convey the city's position on expanding housing supply and stabilizing the jeonse and monthly rent market.

Oh made the remarks to reporters after visiting the completion site of the Hanyang Yeonlib Moa Housing No. 1 project in Gwangjin-gu. "Looking at Seoul housing prices, 'upward equalization' more accurately reflects reality than 'flattening,'" he said. "I am watching with concern the continued rise in Seoul's outer districts."

President Lee Jae Myung had said at a press conference on Sept. 18 that Seoul housing prices were "flattening," describing a trend in which prices in some areas including Gangnam had fallen while relatively lower-priced areas had risen.

According to the Korea Real Estate Board, Seoul apartment sale prices rose 0.13 percent week-on-week in the third week of September, marking 85 consecutive weeks of gains. While high-end areas such as Gangnam and Seocho continued to decline, non-Gangnam and outer districts including Seodaemun and Seongbuk pulled the overall city average higher.

"Many experts have mixed views on whether Gangnam's decline will continue in the second half of this year, but the prevailing opinion is that the outer districts will keep rising through year-end," Oh said. "If that happens, Seoul real estate prices as a whole could continue to climb until the end of the year."

Oh also raised concerns about the jeonse and monthly rent market. "If the government's emphasis on owner-occupancy continues alongside a shrinking jeonse supply, a shift toward monthly rent arrangements and rising monthly rent prices, ordinary Seoul residents will have no choice but to keep bearing a heavy housing cost burden," he said. "I hope the government's policy direction reaches a turning point as soon as possible."

Oh said he also intends to meet recently appointed Land Minister Hong Ji-sun soon to discuss the Seoul housing market and supply policy.

"With former minister Kim Yun-deok, I had frequent opportunities for in-depth discussions, and we had narrowed our differences considerably on issues where the ministry and the city had disagreed — including Yongsan Park and the Tancheon Water Reclamation Center," Oh said. "I thought we were just short of a comprehensive settlement, and I am worried that the personnel change may set those discussions back to square one."

He added that he trusts the new minister will respect administrative continuity. "I hope there will be an opportunity to meet Minister Hong soon so that a good dialogue can continue, and I hope the discussions held with the previous minister can proceed without disruption," he said.

The central government and the Seoul Metropolitan Government have been in talks over using part of the Yongsan Park site for housing supply, identifying alternative supply sites and easing floor-area ratio limits for redevelopment and reconstruction projects. Former Minister Kim and Oh met twice, but the change in minister has passed the follow-up discussions to Hong. At his confirmation hearing, Hong said the core green space of Yongsan Park should be preserved but that the possibility of using some portions of the site for housing could be reviewed if there is broad public consensus.

Oh also highlighted the Moa Housing model as a tool for expanding housing supply in the city center. The Hanyang Yeonlib project in Gwangjin-gu is the first Moa Housing site to be completed and open for move-in since Seoul introduced the program in 2022. The project demolished an aging 99-unit low-rise residential complex and replaced it with a 215-unit apartment building of 15 above-ground floors across four blocks, a net increase of 116 units. The complex was completed last month and move-ins began this month.

"Redevelopment and reconstruction projects can take up to 20 years when the complex is large, but Moa Housing has the advantage of moving quickly because the sites are small," Oh said. "If it can blend well with the surrounding neighborhood, it is a project well worth investing serious effort in."

Seoul currently has 137 Moa Town projects under way. The city aims to break ground on 40,000 Moa Housing units by 2031 by shortening project timelines and expanding financial and administrative support. It also plans to designate 100 additional Moa integrated planning candidate sites by 2030 to lay the groundwork for roughly 120,000 additional units.

"All 137 Moa Town sites are making progress and moving forward," Oh said. "We will do our utmost to break ground on 40,000 units by 2031." He added: "I hope the completion of Moa Housing No. 1 will give momentum to the remaining projects so they can reach move-in as quickly as possible and ease the housing cost burden on Seoul residents."