Presidential Candidates Unveil Real Estate pledges: A Deep Dive
Table of Contents
By Archnetys News Team | Published: May 7, 2025
Lee Jae-myung, and Lee Jun-seok”>Wiht the presidential election just a month away, the spotlight is intensifying on the real estate policies proposed by the leading candidates. while a shared emphasis on addressing housing affordability is evident, thier approaches diverge significantly, especially concerning public-led urban renewal and youth-centric housing solutions. Experts suggest that a willingness to adapt and refine existing policies will be crucial for the next administration.
Kim Moon-soo: Targeting Youth Housing Affordability
Kim Moon-soo, representing the People Power Party, has centered his real estate pledges on alleviating the housing burden for young people. His strategy focuses on addressing the specific needs of this demographic, notably through the concept of half-price rent zones
near universities.
His plan involves incentivizing private sector investment in studio apartments near universities to increase housing supply.Furthermore, he proposes that over 10% of public housing units be specifically designed for single-person households, catering to the growing number of young adults living alone. according to recent data from statistics Korea, single-person households now constitute over 33% of all households, highlighting the urgency of addressing this demographic’s housing needs.
Tax Incentives for Young Professionals
Recognizing the challenges faced by young professionals in their 30s, Kim Moon-soo also proposes important tax benefits for officetels, a popular housing option among this group.Currently, officetels are often counted towards the number of properties owned, perhaps classifying residents as multi-homeowners and subjecting them to higher taxes.
Under his plan, if an officetel is held for more than 10 years, it woudl be excluded from the calculation of the number of houses owned for tax purposes. Moreover, a 5% tax deduction would be granted each year, providing a substantial financial incentive for long-term ownership.
Intergenerational Coexistence Apartments
Addressing the needs of families, Kim Moon-soo has also pledged to create generation coexistence
apartments, designed to facilitate childcare and eldercare. These units, comprising 25% of public housing, would allow parents and children to live independently while remaining close to each other.
To further support this model, he proposes a combined subscription system
that grants special points to families where parents dispose of or rent out their existing homes, enabling them to live near their children. This innovative approach aims to foster stronger family bonds and address the challenges of an aging society.
Lee Jae-myung: Building the 4th Smart New Town
Lee Jae-myung, the Democratic Party candidate, has made the construction of a 4th Smart new Town
a central pillar of his real estate platform. This new city, located in the greater metropolitan area with convenient transportation links, aims to provide affordable housing options for young people and newly married couples.
A key component of this plan is the expansion of transportation infrastructure, including the construction of the GTX D, E, and F lines, designed to connect the entire metropolitan area within an hour. This improved connectivity would not only enhance the quality of life for residents but also stimulate economic growth in the region.
Revitalizing Existing Urban Centers
Beyond the creation of a new city, Lee Jae-myung also plans to revitalize existing urban centers, including the first generation of new towns such as Bundang, Ilsan, Sanbon, Middle East, and Pyeongchon. He also intends to actively support the maintenance of older planned cities like Suwon,Yongin,Ansan,and Incheon.
To encourage redevelopment in aging urban areas, Lee Jae-myung proposes lowering barriers to reconstruction and redevelopment, increasing the floor area ratio, and reducing contribution rates. By easing regulatory burdens and financial disincentives, he hopes to encourage construction companies to invest in these areas, leading to the creation of modern, sustainable communities.
This strategy represents a potential shift in focus for the Democratic Party, moving towards a more balanced approach that considers both public and private sector involvement in addressing the housing crisis. This is interpreted as a strategic shift targeting the middle class,moving away from the Democratic Party’s conventional emphasis on publicity
and recovery of development profits.
South Korea’s Real Estate Market Faces Calls for Policy Normalization Amidst Political Pledges
Experts urge for consistent and market-pleasant policies as candidates announce housing plans.
Political Promises and Market Expectations
As the presidential election approaches,candidates are unveiling their real estate pledges,sparking debate and anticipation within the South Korean housing market. Experts are calling for a shift towards policies that normalize the market, emphasizing stability and long-term vision.
Lee Joon-seok’s Housing tax Reform Proposal
Lee Joon-seok, leader of the reformed Party, has put forward a extensive real estate plan focused on reducing housing taxes in alignment with different life stages. Key components of his proposal include:
- Significantly increasing housing supply through large-scale increases in volume ratio.
- Intensive supply of 59-type (approximately 25 pyeong) housing units, a popular size among households.
- Reducing acquisition and transfer taxes for those purchasing large equilibrium housing.
- Implementing special deductions for long-term holding when selling older properties.
Moreover,Lee has pledged to revitalize the lease registration system to address unsold homes in certain regions and to abolish the controversial local housing association system.
expert Opinions on Market Normalization
Industry experts are weighing in on the proposed policies, emphasizing the need for measures that address current market imbalances.The consensus is that policy continuity and a focus on market fundamentals are crucial for long-term stability.
Addressing Regional disparities
Park Won-gap, a senior real estate committee member at KB Kookmin Bank, suggests targeted tax incentives to stimulate demand in struggling regional markets. The current state of the local state shoudl give the acquisition tax or transfer tax benefits to save demand.
He also advises caution in controlling interest rates in Seoul to prevent excessive capital inflows that could inflate prices.
Park Won-gap, KB Kookmin Bank
The Impact of Multi-Homeowner Regulations
lee Chang-moo, a professor of urban engineering at hanyang University, highlights the unintended consequences of regulations targeting multi-homeowners. As a multi -family regulation, the preference phenomenon is generalized in the market, and the polarization with the provinces has increased.
He argues that these regulations have led to market distortions and increased polarization between Seoul and other provinces.
Lee Chang-moo,Hanyang University
The Importance of Policy Consistency
Seo Jin-hyung,a professor of real estate law at Kwangwoon University,warns against abrupt changes in tax policy. The policy of increasing the burden on the taxation by increasing the tax rate by making taxes that have not existed is taxed or increasing the real price of the disclosure price can shock the market stability.
He emphasizes that unpredictable tax increases can destabilize the market and undermine investor confidence.
Seo Jin-hyung, Kwangwoon University
Looking Ahead: A Call for Balanced Development
Beyond immediate policy adjustments, there’s a growing emphasis on creating integrated communities. Plans are underway to develop complexes that combine public housing, green spaces, and essential amenities on underutilized national land. This holistic approach aims to foster sustainable and balanced urban development.
