7000 Pre-Subscription Units to Be Supplied in Seoul City Center This Year
Authority to Confirm Fixed Dates Granted to Commercial Banks
Purchase-Type Long-Term 10-Year Lease Registration Allowed
Tax Benefits Including Exclusion from Capital Gains Tax Surcharge Granted
[Asia Economy Reporter Kim Min-young] The government will actively supply 500,000 units of public sale housing called 'New:Home,' aimed at helping young and low-income citizens own homes starting this year. Additionally, to resolve issues such as deposit non-return in cases like jeonse fraud, tenants will be granted rights to request priority rights information and tax payment certificates. Measures to normalize registered rental housing to revitalize the rental market will also be promoted.
On the 3rd, the Ministry of Land, Infrastructure and Transport announced its 2023 work plan containing these details under the theme "Republic of Korea of Innovation and Growth, Made by the Ministry of Land, Infrastructure and Transport" at the Blue House State Guest House.
The government will actively supply public sale housing that lowers the burden of purchasing a home and expands housing choice rights under the new brand name 'New:Home.' New:Home symbolizes the first home, a new residential culture, and the beginning of hope, and was selected through a preference survey after gathering public opinions. Starting with a pre-sale announcement of 23,000 units at the end of last year, the government plans to supply 7,000 pre-sale units in prime locations such as downtown Seoul this year. In total, 107,000 units will be supplied this year, with improvements in quality such as expanded supply area and built-in features. The government also plans to eliminate differentiation from sale housing by mixing units in the same building with sale housing and allowing residents to name their complexes as they wish.
Measures to protect tenants from jeonse fraud and similar issues will also be implemented. To prevent unreimbursed damages like jeonse fraud, tenants will be granted rights to request information on priority rights and tax payment certificates. Furthermore, starting from the 1st, a pilot project will be conducted granting commercial banks the authority to verify fixed dates to prevent landlords from secretly obtaining priority secured loans without tenants' knowledge. Victims will be supported with low-interest loans at around 1% and temporary housing, and the HUG deposit return review period will be shortened for prompt assistance. For vulnerable borrowers, support will be provided to convert jeonse loans obtained from commercial banks into low-interest loans at 1.2% to 2.4% annually offered by the Housing and Urban Fund.
Plans to normalize registered rental housing to recover the rental market will also be promoted. Long-term (10-year) purchase-type rental registration will be allowed for apartments (85㎡ or less), with tax benefits such as exemption from capital gains tax surcharges. A minimum registration number of two units will be newly established, and the housing price criteria for long-term (15-year) rentals will be relaxed to activate the supply of private rental housing where low-income citizens can live securely for extended periods.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
