Housing Price Policy: Harmony Between Tax and Supply is Key

The Korean real estate market shows structural flaws where the usual logic of supply and demand does not function properly. When prices rise, demand should decrease, but instead, an increase in demand is observed. Conversely, when prices rise, supply should increase, but in reality, an abnormal pattern of decreasing supply is repeated. This phenomenon occurs because excessive investment and speculative demand flow into the market, preventing the market from self-regulating.

To normalize the real estate market, a scientific tax system design is needed to reduce investment and speculative demand and lower expected returns. This is presented not as predatory taxation but as a necessary measure to normalize the Korean real estate market. A fair tax system must be established by focusing on actual residency when increasing tax rates and reducing the scope to a reasonable extent. Such tax policies are expected to encourage multi-homeowners to put their properties on the market, thereby helping to resolve issues in the distribution structure.

The fact that tax policies alone make it difficult to stabilize housing prices has already been proven through various studies. Papers over the past 120 years have concluded that all cases where housing prices were controlled without sufficient supply failed. Especially to solve the structural problems of the Seoul market, which has high demand and insufficient supply, simply raising taxes has clear limitations. Therefore, a synergistic effect is needed to expand supply by replenishing inventory along with implementing a reasonable pre-sale price cap system.

Criticism has been raised regarding the Democratic Party's lack of real estate experts and low understanding of policies. In response, the Democratic Party holds economic seminars regularly, and real estate experts plan to deliver the necessity of real estate reform and the importance of preventing tax system damage through lectures at the National Assembly. The goal is to encourage National Assembly members to pursue policies with a genuine will for real estate reform through these lectures.