Under-the-Table Support for Tenants and Expansion of Jeonse and Monthly Rent Supply... Yoon Administration's First Real Estate Measure [6·21 Real Estate Measures]

The government will strengthen support for tenants and secure supply of jeonse and monthly rental housing to alleviate instability in the rental market. Additionally, to ease the bottleneck in urban housing supply, regulations for the supply of 2.5 million new housing units will be relaxed, including adjustments to the price ceiling system for pre-sale apartments.

On the 21st, the government held the 1st Real Estate Related Ministers' Meeting at the Government Complex Seoul, chaired by Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho, and finalized the real estate normalization tasks for the third quarter reflecting these measures.

The focus of the Yoon Seok-yeol administration's first comprehensive real estate policy is on "stabilizing the rental market" and "relaxing regulations on real estate taxation, finance, and supply." Regulations related to supply have been eased, such as extending the deadline for disposing of existing homes for mortgage loans in regulated areas to two years and abolishing the obligation to move into newly purchased homes. To stabilize the jeonse and monthly rental market, benefits for "win-win landlords" who raise jeonse prices by no more than 5% have been increased, and related tax systems have been reformed, such as allowing one-household-one-home owners who buy a new home for moving purposes to maintain their comprehensive real estate tax benefits if they sell their old home within two years.

The pre-sale price system, identified as a factor hindering new housing supply, has also been drastically reformed. Various essential costs that occur uniquely in redevelopment projects but were not reflected under previous systems?such as tenant relocation costs, eviction lawsuit fees, and general assembly operation expenses?will now be included. Furthermore, the linkage between raw material prices and basic construction costs has been strengthened to ensure that increases in material costs are reflected more promptly and transparently in construction costs. The Housing and Urban Guarantee Corporation (HUG)'s high pre-sale price review system, which has been criticized for arbitrary and opaque evaluation criteria, has also improved transparency by disclosing review standards and introducing an objection process. These measures aim to prevent construction sites from halting due to conflicts over pre-sale prices and construction costs and to promote new housing supply.

Deputy Prime Minister Choo emphasized "orderly normalization of the real estate market" when announcing this policy. In particular, concerns about instability in the rental market have grown as the "Lease 2 Laws," which include the jeonse and monthly rent price ceiling system and the right to request contract renewal, mark their two-year implementation anniversary at the end of July. He stated, "We intend to proactively respond to factors causing instability in the rental market in the second half of the year through tax and financial support and supply expansion," and added, "Additional normalization tasks will be announced sequentially as they are prepared, considering market conditions, ripple effects, and urgency."

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