Korea Association of Realtors: "Government's First Real Estate Policy Positive... Follow-up Measures Needed"

[Asia Economy Reporter Ryu Tae-min] The Korea Association of Realtors expressed expectations that the first real estate policy announcement by the current government, released the previous day, will contribute to stabilizing the rental housing market to some extent. However, they also voiced concerns that the absence of substantial follow-up measures for housing supply and a review of the Rental 3 Laws could limit the policy's effectiveness.

In a press release on the 22nd, the association welcomed the policy, stating, "Despite limitations in legal amendments, measures such as the 'expansion of capital gains tax exemptions for win-win rental housing,' which practically benefit both tenants and landlords, are expected to contribute to stabilizing the rental housing market." They also expressed optimism, saying, "The rational improvement of the 'HUG's high-priced housing management system,' which has been evaluated as being operated somewhat arbitrarily, is positively assessed from the perspective of housing supply."

However, the association pointed out that while the government's explanation that the 'rationalization of rigid operations to promote housing supply' inevitably reflects real conditions such as rising material costs is partly valid, it could increase the burden on actual homebuyers. Furthermore, they explained, "In addition to demand stabilization policies, practical supply policies must be implemented simultaneously for effective results, so we hope that follow-up measures such as 'strengthening tax support for private construction rentals and public rentals' will be carried out as soon as possible."

They continued, "Since the designation of regulated areas affects the entire process of acquiring, holding, and transferring real estate, efforts must also be made to promptly lift designations in areas nationwide that meet the conditions for removal among speculative overheated zones and adjusted target areas."

The association also mentioned the recent presidential directive to review the Rental 3 Laws, stating that the contract renewal request period should be prioritized for review to reduce tenants' burdens. They added, "We must pay attention to preparing fundamental measures that can alleviate the uncertainties of the Rental 3 Laws as soon as possible and to revitalizing transactions in the existing housing market, which is struggling due to loan regulations, by lifting designations on adjusted target areas."

Meanwhile, on the 21st, the government held a real estate-related ministers' meeting chaired by Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho, announcing real estate policies focused on stabilizing the rental market and improving the price ceiling system for pre-sale housing. The policy includes measures to reduce tenant burdens such as expanding capital gains tax exemptions for win-win rental housing, strengthening jeonse loan support for low-income landlords whose leases have expired, and expanding support for monthly rent and rental deposit principal and interest repayments.

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