Seoul Mayor Oh Se-hoon on the 24th called the "national real estate forum" attended by President Lee Jae-myung "a contradiction that doesn't add up," and said he would soon submit a detailed report on redevelopment and reconstruction projects to the presidential office.
On social media, Oh posted an entry titled "If you solve a test while hiding the answers, the result is a failing grade," and stated accordingly.
Oh said, "At yesterday's 'national forum on real estate policy,' the public once again confirmed the president's view of real estate issues," adding, "In particular, it was a bitter occasion that reconfirmed the president's deep-seated prejudice and distorted perception of redevelopment and reconstruction."
He continued, "While the president lamented that it is almost impossible to find land in Seoul for site development, he also said that reconstruction does not greatly increase supply because unit sizes grow, and that redevelopment actually reduces the total number of households moving in," adding, "This acknowledges the reality that there is no more land to build homes in Seoul while denying the supply effect of redevelopment and reconstruction, which are in effect the only means for large-scale supply."
Oh also said, "The president's remarks are not consistent with the facts." He said, "In the case of the urban renewal projects that Seoul is pushing, which aim to break ground on at least 310,000 homes by 2031, a net increase of about 87,000 homes is expected," adding, "Compared with the net increase of 32,000 homes in Seoul under the government's Jan. 29 measures, that is about 2.7 times higher."
Oh went on, "On average, reconstruction yields a net increase of about 40% in dwellings, and redevelopment, too, is delivering an average supply increase of about 15% as the Seoul Metropolitan Government actively pushes upzoning and floor area ratio relaxations," adding, "The reason Seoul has repeatedly asked the government to ease the legal maximum floor area ratio for private renewal projects by up to 1.2 times is precisely because of this effect."
Oh also said, "If supply is insufficient, we can solve the problem with tailored policies." He said, "As with the separable household-type dwellings being pursued by the Seoul Metropolitan Government, there are plenty of ways to increase the number of dwellings through institutional fixes," adding, "The value of redevelopment and reconstruction is not confined to the sheer number of dwellings."
He added, "Has the president ever personally visited Changsin-dong in Jongno District, which is slated for redevelopment?" and said, "For residents in aging, dangerous housing areas where even fire engines struggle to enter, redevelopment is not just a real estate venture but a hope for life."
Oh said the supply effect of urban renewal projects must be acknowledged to solve real estate issues. He said, "If we hide the answers and merely repeat the tax-hike policy that was revealed as the wrong answer on previous tests, the result will again be a failing grade," adding, "I will soon submit a detailed report on renewal projects to the presidential office."