Is There No Solution to the Growing Number of Unsold Apartments?... Daegu City Forms Housing Policy Advisory Group

14 Experts from Public-Private Joint Team Formed
Policy Suggestions to Boost Demand in Non-Capital Regions

Daegu City held a public-private joint housing policy advisory meeting at the Sanggyeok Government Complex on the 25th to make an all-out response to the issue of unsold housing.

Experts from various fields attended the advisory meeting to assess the local housing market and discuss recommendations for central government housing policies, as well as future outlooks and response strategies for the regional housing market.

A joint public-private housing policy advisory committee meeting is being held in Daegu.

As part of the “Comprehensive Response Plan for Resolving Unsold Housing in the Region” announced in June, Daegu City formed a public-private joint housing policy advisory group consisting of 14 experts across 7 fields to respond flexibly to changes in the housing market and government policies.

Daegu City plans to regularize advisory meetings of this public-private joint housing policy advisory group to monitor local housing market and policy trends, and to convene immediate meetings whenever urgent issues arise to devise response measures.

In addition, the city will identify policy recommendations for the central government to stabilize the local housing market and proactively develop response strategies by gathering the advisory group’s opinions on future housing market and interest rate forecasts.

Meanwhile, during the meeting, participants reviewed the current status of the local housing market, the measures Daegu City has implemented to resolve unsold housing, and recent government policies. They also discussed the response plan for unsold housing announced in June, as well as housing market and interest rate outlooks for the second half of the year.

In particular, the meeting pointed out that, unlike the Seoul metropolitan area where supply is insufficient, local regions are experiencing an accumulation of unsold homes, intensifying the polarization of the housing market. It was noted that the government’s recently announced housing market stabilization measures focus on supply in the metropolitan area and lack demand-stimulating policies such as financial and tax support for resolving unsold homes in local regions.

Additional policy suggestions discussed at the meeting included strengthening support for actual homebuyers among young people through special loans, interest rate policies for single-homeowners, housing ladder policies, and easing corporate tax regulations to relax investment restrictions in local areas, on top of previously requested tax benefits and DSR (Debt Service Ratio) relaxation.

Participants agreed that there are limits to resolving unsold housing through local government policies alone, and emphasized the need for differentiated housing policies tailored to non-metropolitan areas.

Daegu City plans to strongly urge the central government to implement demand-stimulating policies focused on non-metropolitan regions, based on the diverse opinions of the advisory group.

Heo Jooyoung, Director of the Urban Housing Bureau of Daegu City, stated, “This advisory meeting was a valuable opportunity to objectively assess the local housing market through the insights of experts from various fields. We will continue to hold regular advisory meetings and work closely with advisory members to flexibly respond to changes in the local housing market and government policies, doing our utmost to ensure a soft landing for the regional housing market.”