"Moving Toward the Disappearance of Jeonse and Wolse"... Mismatch Between Non-apartment Market Regulations and Supply Measures

An analysis has emerged suggesting that the government's real estate policies are heading toward the gradual disappearance of the Jeonse system, which will inevitably lead to structural changes in the housing market. It is pointed out that market confusion is intensifying as the effectiveness of recently announced real estate supply measures clashes with tax regulations pressuring the non-apartment market.

"Policy Direction Toward the Disappearance of Jeonse and Wolse"... Concerns Over Binary Housing Choices

Observations have been raised that the current direction of government policy is heading toward the disappearance of the Jeonse system. The video explained that government policies are moving in a direction to gradually eliminate the Jeonse system rather than maintaining it. In particular, citing the President's mention of the phenomenon of the Jeonse system disappearing during press conferences and other events, an interpretation was offered that the policy intention is clear.

If this trend continues, the housing choices for non-homeowners are expected to be compressed into two options. They will face a situation where they must either purchase a house directly or bear the high cost of monthly rent (Wolse). The video analyzed that the current government's policies are limiting the roles of entities responsible for Jeonse supply, such as inducing multi-homeowners to sell and reducing the housing rental business system. It was mentioned that this could create a situation where the middle class is forced to choose between the burden of housing costs and acquiring their own home.

Controversy Over the Effectiveness of Supply Measures..."Recycled Measures Without New Sites"

Criticism has been raised that the real estate supply measures announced by the government lack effectiveness. It is pointed out that many of the recent supply measures utilize sites that were announced in the past, meaning there is a lack of new supply sources. Although the Seoul Metropolitan Government announced that it would supply an additional 17,500 units of public housing by 2030, issues regarding on-site execution were also mentioned, such as supply plans for specific areas facing opposition from residents.

In particular, there is a view that the contents of reports from the Ministry of Land, Infrastructure and Transport and the Ministry of Economy and Finance are focused more on announcing the government's efforts rather than providing practical measures for the people. Regarding the plan to shorten the supply process for new cities, the analysis suggests there are limits to creating new demand, as the progress of projects announced in the past is not meeting expectations.

Crisis in the Non-apartment Market and Concentration of Apartment Demand

The polarization phenomenon in the real estate auction market was also dealt with as a major issue. While volumes are pouring into the auction market, it is characterized by the fact that they are concentrated on non-apartment properties such as villas, multi-family houses, and urban-type living houses, rather than apartments which have high demand. On the other hand, apartment auctions show that the general advantages of auctions are not working, as they record winning bid ratios higher than market prices due to the concentration of actual residence demand.

Although the government is putting forward measures to increase the supply of non-apartments, concerns are arising that this may instead cause prices in the non-apartment market to fall. This is because current non-apartment owners are in a situation where they must put their properties on the market due to tax regulations such as capital gains tax and comprehensive real estate holding tax, and if supply increases on top of this, the imbalance between supply and demand could intensify. The video pointed out that the government's implementation of measures focused on non-apartments, rather than revitalizing redevelopment and reconstruction for apartment supply, is disconnected from actual market demand.