The Korea Housing Builders Association and the Korea Housing Association expressed their support for the 'local-centered construction investment reinforcement plan' announced by the government on the 14th.
The Korea Housing Builders Association stated in a press release that it is 'a measure that could be the starting point for resolving unsold inventories after completion in the regions and for market recovery.'
The Korea Housing Builders Association noted that it has shown progress in resolving unsold inventories by extending the one-household, one-dwelling exemption applied to unsold dwellings after completion and the tax exemption for the exclusion of dwellings from taxation until the end of 2026, and by exempting personal tax for multiple home owners, providing a 50% reduction temporarily for one year.
It also positively assessed measures such as expanding the volume of unsold units after completion, raising the purchase price cap, and exempting transfer tax for CR Reits.
It added that 'the measures for resolving unsold units may achieve some effectiveness' and noted that 'the local government tax was exempted when HUG purchases and when the business entity redeems in the HUG Unsold Assurance Repurchase Program, thereby securing the effectiveness of the system.'
It continued, 'By expanding the tax support regions and subjects for second home purchases in areas experiencing population decline, where recovery is difficult solely with local demand, and by restoring apartment purchase rental registrations for one year, it has become possible to drive the recovery of the local housing market.'
However, it expressed disappointment that the exclusion of the comprehensive real estate tax for apartment purchase rental registration was missing. The tax support for rental housing in population-declining areas is bound to have limited effectiveness, so it is necessary to expand it to the entire region. The Korea Housing Builders Association emphasized that 'there is a need for supplementation during the legislative process of related bills, pointing out that the effectiveness of the measures is diminished due to the burden of the comprehensive real estate tax for over 10 years.'
The Korea Housing Association also stated it is 'a measure that can relieve the burden on the housing construction industry, which is facing challenges due to the recent increase in unsold dwellings after completion in the regions.'
The Korea Housing Association evaluated that especially measures such as ▲ exemption from purchase tax for unsold dwellings after completion in regions and a temporary 50% reduction for individual purchases ▲ expansion of subjects for integrated review under the Housing Act ▲ extension of the reduction period for development burden fees ▲ raising the benchmark for purchasing unsold dwellings by LH after completion in regions will help resolve unsold inventories in the regions and secure liquidity for construction companies.
However, it expressed hope that to further expand the policy effects of this measure, additional tax relief measures for multiple home owners should be reviewed.
An association official stated, 'I hope this plan, prepared by listening to the voices of the industry amid difficult domestic and external conditions, will serve as a catalyst to normalize the stagnating local housing market,' and added, 'I expect prompt follow-up measures so that it can be felt quickly in the field.'
It added, 'The association will actively respond to government policies, supply high-quality dwellings stably, and cooperate with all its capabilities to restore vitality to the local housing market.'
The 'local-centered construction investment reinforcement plan' announced by the Ministry of Land, Infrastructure and Transport on this day includes various measures to promote local construction investment and invigorate the construction market, such as ▲ supplementing local real estate demand ▲ rapid execution of public SOC projects ▲ preventing public project failures and delays ▲ easing construction cost burdens.