[Breaking] "Ruling Party to Abolish New Registration of 'Purchased Rental' for Deceased Tenants... 130,000 Units Expected to Enter Market"

Democratic Party Real Estate Special Committee
"Abolition of New Registration for 'Purchase Rental'"

[Asia Economy Reporter Koo Chae-eun] The Democratic Party's Special Committee on Real Estate announced on the 27th that it has decided to abolish the new registration system for purchase rental housing for all types of housing.

They also stated that the capital gains tax exemption benefit for existing businesses registered before July 2020 will be improved to apply only if the transfer occurs within 6 months after cancellation.

To encourage early listing of properties, the current capital gains tax exemption benefit will be recognized only for 6 months after registration cancellation, after which normal taxation will apply.

The special committee diagnosed, "As of February 2021, there are already 468,000 houses nationwide that have been automatically or voluntarily canceled, but actual cases of sales in the market are minimal," adding, "Although rental businesses have ended, the capital gains tax exemption benefit is indefinite, so properties are not coming onto the market."

They further mentioned, "If tax benefits are reorganized and voluntary cancellation requirements are relaxed, it is estimated that about 130,000 houses, which is about 20% of the approximately 650,000 houses expected to cancel rental registration, will come onto the market as listings."

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