More than 1,800 proposals were submitted in six days to the online website the government opened to hear public opinion on real estate policy. Posts about housing finance were the most numerous, and there were repeated calls to raise the loan limit for young people and end users without homes, and to exclude group and balance loans from household loans' total volume controls. Some also argued that financial and building regulations should be eased to increase non-apartment supply. Opinions were split on strengthening taxation for non-resident and ultra-high-priced single-home owners.
◇ "On the verge of losing the deposit because loans are blocked"… calls for exceptions for end users
According to the real estate forum website (http://부동산토론회.kr) on the 20th, as of 9 p.m. on the 19th there were a total of 1,807 public proposals. By field, housing finance was the most with 827. Housing supply and regulation followed with 548, and real estate taxation with 432.
The website, which opened on the 14th, is scheduled to operate until the 23rd, when the large real estate forum presided over by President Lee Jae-myung will be held. The government set it up to additionally gather opinions from people who cannot attend the on-site forum.
In housing finance, proposals continued to exclude mortgage loan for actual-residence dwellings and group and balance loans from household loans' total volume control. There were also appeals that a sudden cut in the loan limit could cause people to lose their deposits or down payments.
A person surnamed Choi wrote in a post titled "Easing loan regulations for young people buying for the first time for actual residence" that "I signed a contract in May to buy a property from a multi-home owner, but with loans blocked I am about to lose the deposit." Choi argued that exceptions to loan regulations should apply to first-time buyers of dwellings and to actual residents.
The five major banks—KB Kookmin, Shinhan, Hana, Woori and NH Nonghyup—are said to have used about 85% of their household loans growth targets for this year. KB Kookmin Bank reduced the maximum limit for mortgage loan from 600 million won to 300 million won. Some banks are also restricting new loan applications or tightening screening standards.
A person surnamed Lee wrote in a post titled "Please don't crush the dream of a home for a young person without a home" that "It's hard to get loans not only from banks but also from secondary financial institutions, so there is no way to prepare the balance," adding, "I am in a position to either give up moving in or cancel the contract." Lee then requested, "Apply exceptions to household loans' total volume regulations for group loans and balance loans."
Posts also called for easing regulations on jeonse loans for end users, applying the existing terms of the New Home sharing-type advance subscription dedicated mortgage, and maintaining support measures for advance subscribers to Goyang Changneung S3 block.
◇ "Ease non-apartment regulations to increase supply"
In housing supply, many proposals called for easing regulations on non-apartment types such as multi-family and row dwellings, urban lifestyle dwellings and officetels.
A person surnamed Lee, who identified as a multi-family dwelling rental business operator, said, "Regulations on multi-home owners, combined with building coverage and floor area ratio limits, parking installation standards and sunlight rights rules, have made it difficult to build villas." Lee added, "With the decline in non-apartment supply, housing options for ordinary people are shrinking, and the tilt toward apartments and rent increases are worsening."
According to housing statistics from the Ministry of Land, Infrastructure and Transport, nationwide non-apartment permitting from January to May this year was 14,676 units, and housing starts were 12,358 units. These were down 69% and 79%, respectively, from the same period in 2021.
There was also a proposal that, to increase non-apartment supply, dwellings that meet certain criteria should be excluded from the count of owned dwellings. A similar argument was raised at the forum hosted by the Ministry of Land, Infrastructure and Transport (MOLIT) on the 14th. Kim Deok-rae, senior research fellow at the Korea Housing Institute, said at the time, "Non-apartments are closely connected to the jeonse and monthly rent market, the multi-home owner system and financial regulations," adding, "It is also worth proactively considering excluding non-apartments that meet certain criteria from the dwelling count."
In real estate taxation, opinions were divided over strengthening property taxes for non-resident and ultra-high-priced single-home owners. While calls continued to lower the burden of the comprehensive real estate tax and property tax, some argued that, to stabilize the housing market, the tax burden on high-priced dwellings should be raised.
There was also a proposal to change the comprehensive real estate tax assessment standard from the number of owned dwellings to a combined value basis. A person surnamed Choi said, "If taxes are levied based on the number of dwellings rather than their value, the preference for a 'single smart home' will inevitably continue," adding, "It will be hard to curb the excessive rise in Gangnam apartment prices."