President Lee Jae Myung cautioned against the buying of high-priced homes as investments rather residences as the suspension of a capital gains tax surcharge on owners of multiple homes is set to expire.

The president made the statement Thursday in a social media post, sharing an article reporting that as Lee made clear the tax relief for real estate investors would expire as scheduled, some owners rushed to sell while buyers shifted toward concentrating their assets in “one premium property.”

Lee said that shifting to a “single premium home” would not be advantageous unless the purchase was for residential purposes.

On January 23, Lee also pointed out that granting tax reductions based on long-term ownership seemed unreasonable not only for multiple-home owners but also for single-home owners if the property was held for investment or speculative purposes rather than for residential use. 

He added that the suspension discourages sellers from entering the market and effectively encourages speculation.