Yoon Seok-yeol, the People Power Party's Presidential Candidate, Announces 'No. 1 Pledge': What Is the Core of His Real Estate Policy?

Supply Target of 1.3 Million Households in the Seoul Metropolitan Area and 2.5 Million Nationwide Over 5 Years

[Asia Economy Reporter Kangwook Cho] 'Supply expansion' and 'regulation easing.' These are the core of the real estate policy, the number one pledge put forward by Yoon Seok-yeol, the former Prosecutor General who was elected as the People Power Party's presidential candidate on the 5th.

Earlier, on August 29, Yoon announced a large-scale housing supply plan as a solution to stabilize housing prices.

He pledged to supply more than 1.3 million housing units in the metropolitan area alone and a total of over 2.5 million units nationwide during his five-year term.

The supply plan includes 'Youth Cost-Price Housing' and 'First Home Near Subway Station Housing.'

Youth Cost-Price Housing, targeting the supply of 300,000 units within five years, is a system where houses are sold at cost, cheaper than market price, and if residents live there for more than five years, they can sell the house back to the state and receive at least 70% of the profit.

The plan is not limited to youths in their 20s and 30s but also includes low-income long-term homeless households with children.

The First Home Near Subway Station Housing aims to supply 200,000 public sale housing units over five years for homeless households who want to live in convenient subway station areas. To achieve this, the floor area ratio of private reconstruction complexes near subway stations will be increased from the current 300% to 500%, and 50% of this will be secured through donation in kind.

Yoon stated that by utilizing underused national and public lands such as vehicle maintenance depots, retention basins, and public garages through underground or upper deck multi-layered complex development methods, it is possible to supply 40,000 housing units annually without public funds.

The pledge also includes easing regulations on reconstruction, redevelopment, taxation, and loans. In particular, there is a plan to ease excessive regulations on mortgage loans and reduce capital gains tax rates. Additionally, the plan aims to slow down the pace of official price realization to prevent a sharp rise in property holding taxes.

He also expressed the intention to revise the 'Lease 3 Laws.' A measure to provide tax benefits to landlords who do not raise jeonse (long-term deposit lease) prices was also mentioned.

Along with this, the loan-to-value ratio (LTV) for newlyweds and young people will be raised to 80% to secure funds necessary for home ownership, and the private rental housing business, which the current government has weakened due to speculation concerns, will be normalized.