Yoon Seok-yeol's First Pledge Announcement: "Supply of Youth Cost-Price Housing and First Home Housing Near Stations"

Youth and Newlywed Couple LTV Increased by 80%

Former Prosecutor General Yoon Seok-yeol, a preliminary presidential candidate of the People Power Party, is answering reporters' questions after attending the Defense Forum seminar with the people held at the Air Force Hotel in Yeongdeungpo-gu, Seoul, on the afternoon of the 27th. 2021.8.27 Photo by National Assembly Press Photographers [Image source=Yonhap News]

[Asia Economy Reporter Hyunju Lee] Yoon Seok-yeol, the presidential candidate of the People Power Party, announced his first pledge on the 29th with a real estate policy. He set goals for housing stability for vulnerable groups through various supply expansions such as 'Youth Cost-Price Housing' and 'First Home Housing near Subway Stations,' as well as normalization of regulations and tax systems.

On the same day, Yoon held a press conference at the People Power Party headquarters and said, "To ensure stable supply of various types of housing, we will improve systems to facilitate smooth reconstruction and redevelopment, and expand new housing supply by utilizing floor area ratio incentives." He added, "Through the steady promotion of the 3rd New Towns in the metropolitan area, we will supply more than 2.5 million new homes nationwide and more than 1.3 million new homes in the metropolitan area over five years." He continued, "We will create systems and conditions to supply high-quality private rental housing, and expand desirable residential areas for citizens through transportation network expansion and public service improvements." He also said, "We will ease mortgage loan regulations and reduce capital gains tax rates."

Yoon stated, "We will adjust the pace of the realistic valuation of housing official prices and comprehensively review the comprehensive real estate taxation system, including tax rate reductions for one-household-one-home owners," and pledged to normalize the rental housing business.

As specific supply measures, he introduced Youth Cost-Price Housing and First Home Housing near Subway Stations. Youth Cost-Price Housing will be supplied at 60,000 units annually and 300,000 units within five years, with buyers paying 20% of the sale price based on construction costs lower than market prices and repaying the remaining 80% through long-term low-interest principal and interest payments. The main targets are young household heads in their 20s and 30s, with additional points given to households with low income and assets, long-term non-homeowners, and those with children. Households in their 40s and 50s with assets below a certain level and multiple children who are non-homeowners are also included.

The First Home Housing near Subway Stations aims to supply 200,000 units, created through floor area ratio increases (from 300% to 500%) in private reconstruction complexes near subway stations and by utilizing underused national and public land in large cities. Buyers will also pay 20% of the sale price upfront and purchase the remaining 80% through long-term principal and interest repayments.

Additionally, for newlyweds and young people, the mortgage loan-to-value ratio (LTV) will be increased by 80%, and financial support such as low-interest loans will be actively provided to help them purchase homes.

This content was produced with the assistance of AI translation services.