"Urgent Need for Proactive Housing Policy Support"…Housing Construction Association Proposes 'Top 10 Tasks'

Jae-Hong Park, President of the Korea Housing Construction Association / Photo by Jin-Hyung Kang aymsdream@

[Asia Economy Reporter Moon Jiwon] The Korea Housing Builders Association announced on the 25th that it has proposed '10 major tasks' to the government and the National Assembly to overcome the crisis faced by the housing industry due to the novel coronavirus infection (COVID-19).

The association pointed out, "With COVID-19 entering a global pandemic, the world economy is expected to suffer an unprecedented severe shock," adding, "Especially if negative growth becomes a reality, we are likely to face an unprecedented economic crisis."

It continued, "The domestic real economy downturn is expected to directly impact the housing market, and the Housing Industry Research Institute has forecasted that a 20% decrease in housing investment would result in a loss of 220,000 jobs," explaining, "If the housing industry experiences a hard landing, a serious shock to the bottom-tier economy will be inevitable."

In the proposal, the association urged ▲realistic adjustment of standard construction costs to maintain stability in the low-income rental market ▲lowering interest rates on rental housing funds to activate rental housing supply ▲reconsideration of strengthening resale restrictions in local metropolitan cities ▲improvement of commercial area floor area ratio regulations to expand urban housing supply ▲activation of integrated reviews to simplify housing supply permits and approvals ▲prohibition of unreasonable demands for infrastructure donations ▲temporary reduction of development charges ▲raising the criteria for high-priced housing to reduce tax burdens on genuine buyers ▲support for liquidity of housing developers to resolve management crises ▲financial and tax support for housing stability of low-income genuine buyers.

The association emphasized, "Negative trends continue in housing market indicators such as housing transactions, permits and approvals decline, and increased move-in delays," stressing, "It is necessary to prepare progressive housing policies so that the housing industry can serve as a pillar of the real economy."

The association has delivered the proposal to five ministries including the Ministry of Land, Infrastructure and Transport, Ministry of Economy and Finance, Ministry of the Interior and Safety, Ministry of SMEs and Startups, Financial Services Commission, as well as to the National Assembly.

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