The Korean Housing Association proposed policy tasks such as the abolition of heavy taxation on multiple dwelling owners and tax support for unsold dwellings in local areas to normalize the housing market.
On the 28th, the association published the 'Housing sector policy tasks for the recovery of the people's economy and national housing stability' and suggested it to major political party presidential campaigns such as the People Power Party and the Democratic Party of Korea, as well as the National Assembly and the government.
The association diagnosed that the current housing market is facing issues such as deepening polarization between Seoul and local areas, a surge in unsold dwellings in local areas, and a liquidity crisis for construction companies due to increased cost burdens. It also identified factors threatening the housing market, including worsened housing supply conditions due to inter-floor noise regulations and the implementation of zero-energy buildings, rental frauds outside of apartments, and instability in the apartment rental market caused by a sharp decline in housing supply.
The association pointed to the causes of the housing market crisis as ▲ the loss of public trust in the government's policies due to the non-implementation of real estate measures announced by the previous administration ▲ excessive regulations on multiple dwelling owners in all areas including taxation, finance, and loans ▲ the decrease in construction starts in the private sector, which accounts for 80% of total housing supply.
To normalize the housing market, the association emphasized the need for the implementation of 10 key tasks such as ▲ the abolition of heavy taxation on multiple dwelling owners and ▲ tax support for unsold dwellings in local areas. This includes ▲ relaxing the three-phase stress debt service ratio (DSR) regulation ▲ establishing a 'Housing Policy Division' to enhance housing supply in urban areas ▲ measures to accelerate the speed of maintenance projects ▲ reintroducing private rental registrations for apartments (short-term and long-term) ▲ easing restrictions on pre-sales due to business suspensions ▲ reasonable improvements to the Serious Accident Punishment Act ▲ revitalizing the supply of modular houses ▲ promoting the supply of senior dwellings.
The association proposed 30 policy tasks by institutional sector in the housing sector: ▲ expanding private housing supply for national housing stability (10 tasks) ▲ improving unreasonable regulations to activate the housing market (10 tasks) ▲ advanced technology and quality to lead future housing (6 tasks) ▲ supporting liquidity for construction companies to leap in the housing industry (4 tasks).
A representative of the association noted, "It is a fact that the role of the housing and construction industry has been crucial in overcoming national economic crises such as the International Monetary Fund (IMF) currency crisis and the global financial crisis," and added, "The housing industry will continue to make efforts to enhance financial stability to overcome the current crisis, and we hope the new government will actively seek measures to normalize the housing market for the recovery of the people's economy and national housing stability."