Request to Designate Unsold Housing Management Area... Daegu City Strongly Appeals to Government

Measures to Address Housing Supply and Increase in Unsold Units

National Unsold Housing Status.

[Asia Economy Yeongnam Reporting Headquarters Reporter Yeo Jong-gu] As the housing market stiffened due to a decrease in housing transactions and an increase in unsold units, Daegu City has decided to prepare measures to stabilize the housing market.

Daegu City announced on the 28th that it will activate a task force composed of real estate experts starting from the 15th.

So far, the government has introduced housing policies 28 times to stabilize the housing market, but these have practically only caused housing prices to rise and transactions to plummet.

In particular, strict regulation of mortgage loans has led even buyers intending to live in the homes to hesitate in purchasing.

As a result, the same loan regulation policies applied to the metropolitan area led to decreased transactions, price drops, and an increase in unsold inventory.

Since December 18, 2020, when all areas of Daegu were designated as regulated areas, the housing market has stiffened, making it urgent to prepare countermeasures.

On the 15th, Daegu City held an advisory meeting of the Housing Policy Advisory Group composed of real estate experts to review the housing market and discuss stabilization measures suitable for current conditions.

Until now, Daegu City has made efforts to control supply by limiting the floor area ratio for residential complexes in commercial areas (June 2021), maintaining a policy to suppress large-scale new housing site supply in outskirts, and strengthening building reviews related to sunlight rights.

Daegu City plans to continuously request the central government to lift the regulated area designation and, for some areas with severe unsold units, to request designation as unsold management areas.

Additionally, Daegu City plans to improve the system delegating housing policy authority from the central government to local governments and to consider expanding and applying the purchase rental housing project, where the public sector buys private housing to use as public rental housing when the unsold housing problem becomes serious.

Daegu Mayor Kwon Young-jin said, “We will actively implement housing market stabilization policies by gathering the measures proposed by advisory members who have grasped the real estate field and real economy trends.”

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