The Korea Housing Builders Association on the 7th welcomed the Korea Housing & Urban Guarantee Corporation (HUG) introducing, in parallel, the Korea Association of Property Appraisers "appraisal institution recommendation system" when guaranteeing lease deposits for construction lease dwellings.
In the dwellings industry, when signing up for guarantees, HUG had required appraisals only from institutions it designated. As a result, companies have faced management difficulties due to lower valuations of lease dwellings amid the economic downturn.
The association projected that the introduction of this system has laid the groundwork for more objective and reliable appraisals.
The association gave high marks to HUG for improving guarantee-related systems for dwellings while maintaining ongoing communication with the industry, including this appraisal system upgrade.
In particular, the association expects that HUG's preemptive support measures, such as guarantee fee discounts implemented to ease the burden on the dwellings industry heightened by instability in the Middle East, will help revive the housing market and expand the supply of rental apartments.
An association official said, "We plan to further strengthen communication and cooperation with HUG going forward," adding, "Based on this close cooperative relationship, we hope the housing market will quickly regain momentum and return to normal."