[2026 Growth Strategy] Easing Fears of "Being Unable to Sell at a Loss"... First Introduction of Buyback Guarantees for Non-Metropolitan Complexes

Lee administration unveils 2026 Economic Growth Strategy
Encouraging a recovery in buying sentiment by easing end-user anxiety
Raising the 700 million won threshold for non-metropolitan unsold-home tax benefits and extending CR-REITs
Reconfirming the 'roadmap' for supply plans, including third-generation new towns

The government is introducing, for the first time, a tentative scheme called the “Housing Buyback Guarantee Program,” which guarantees buyers the right to resell their homes at a predetermined price in order to resolve the issue of unsold housing units in non-metropolitan areas. The government will raise the price threshold for the special tax rule on single-home ownership applied to one unsold, completed unit from 600 million won to 700 million won, extend tax incentives for population-declining areas, and continue support for Corporate Restructuring Real Estate Investment Companies (CR-REITs). On the supply side, the government plans to break ground on 50,000 housing units this year, including 18,000 units in the third-generation new towns.

These measures were included in the government’s real estate market stabilization plan, announced on the 9th as part of the “2026 Economic Growth Strategy” unveiled jointly by the relevant ministries. The government has prepared supply-focused measures for the Seoul metropolitan area and supply-demand management-focused measures for non-metropolitan regions.

In particular, with regard to unsold homes in the provinces, the government will push forward a comprehensive package aimed at boosting demand. While previous measures for unsold homes focused on liquidity support for construction and development companies, the new approach, for the first time, shifts to alleviating the loss concerns of homebuyers.

A model house of an apartment for sale in Seoul built on a site in Goyang, Gyeonggi Province. Photo by Yonhap News

A 'safety device' to ease end-user anxiety... First introduction in the second half of this year

The Housing Buyback Guarantee Program, which the government aims to introduce in the second half of this year, is a system that grants buyers of new housing units in non-metropolitan areas the right to resell their homes at a predetermined price. At the time of signing the purchase contract, buyers will choose whether to enroll in the buyback guarantee. If they enroll, the buyback price will be set in advance at around 80% to 100% of the sale price, taking into account the location and business feasibility of the housing project.

After moving in, if the home price falls following a certain period of residence (about 2 to 3 years), subscribers will be able to request a buyback from a housing-acquisition Real Estate Investment Trust (REITs). A REITs is a company that purchases and manages real estate using funds pooled from multiple investors. Even before move-in, buyers will be able to request a buyback if personal circumstances make it difficult to reside in the home. An official at the Ministry of Land, Infrastructure and Transport said, “The intent is to provide a safety net for genuine end-users who wish to live in the property but hesitate to buy because they fear a drop in house prices,” adding, “Details such as the required period of residence will be finalized after expert review.”

This is the first time that a policy directly targeting end-users has been included among measures to address unsold homes in non-metropolitan areas. Until now, the government has focused mainly on providing liquidity support to construction and development firms. For example, under the “Non-Metropolitan Unsold Housing Safe Buyback Project,” the Korea Housing & Urban Guarantee Corporation (HUG) purchased unsold homes before completion at around 60% of the sale price to provide funds to construction companies, and then required the construction companies to buy them back within one year after completion. In contrast, the Housing Buyback Guarantee Program grants the buyback right to homebuyers. It is essentially a preemptive measure for unsold homes that aims to draw in end-user demand by easing concerns such as, “What if prices fall later and I can’t sell without taking a loss?”

The private sector is already operating similar buyback schemes. Focusing on complexes in non-metropolitan cities such as Gwangju and South Jeolla Province, Daegu, and Busan, these programs grant buyers the right to resell their homes within a certain period. They function as a type of “insurance-style product” against falling home prices. The government plans to reference these private examples while enhancing stability through the use of REITs. With REITs in the picture, buybacks can be guaranteed regardless of the bankruptcy risk of individual construction companies, and public guarantees and similar mechanisms can be linked. This system was discussed last year by the National Policy Planning Committee, and this is the first time it has been publicly announced.

Raising the unsold-home tax special rule threshold from 600 million to 700 million won is 'support fire'... Limited impact over the past two years

Along with the Housing Buyback Guarantee Program, the government will also promote a “three-part demand-expansion package.” This includes tax incentives for housing in population-declining areas, an extension of tax benefits for CR-REITs, and raising the price threshold for the special single-home rule applied to one unsold, completed unit from 600 million won to 700 million won.

Among these, the newly added measure is the increase in the price threshold for the special rule on unsold homes after completion. When a one-home owner acquires an additional unsold, completed home outside the Seoul metropolitan area, the price standard at which the single-household single-home special rule applies will be raised from 600 million won to 700 million won. If this special rule is applied, the owner will receive benefits such as capital gains tax exemption for up to 1.2 billion won in transfer value and a basic deduction of 1.2 billion won from the taxable base for the comprehensive real estate holding tax.

However, the effects of the existing special rule have been limited. Since January 2024, the government has applied the single-household single-home special rule to acquisitions of unsold, completed homes outside the metropolitan area with a floor area of up to 85 square meters and an acquisition price of 600 million won or less. Nevertheless, as of the end of November last year, the number of unsold, completed homes nationwide stood at 29,166 units, the highest level since March 2012. Most of these units are located in non-metropolitan areas such as Daegu and North Gyeongsang Province. Despite various incentives, the number of unsold homes has not declined; instead, it has continued to rise.

Experts believe that while the new policies will help prevent further downturns, the resolution of unsold inventory will ultimately be determined by overall market supply and demand. Ham Youngjin, head of Woori Bank’s Real Estate Research Lab, said, “Ahead of the local elections, we are at a stage where the government needs to present a policy direction on the issue of unsold homes in non-metropolitan areas,” adding, “As the volume of move-ins declines, jeonse prices have begun to move, and if jeonse prices rise, demand may emerge to purchase even unsold, completed homes.”

Park Wongap, senior real estate research fellow at KB Kookmin Bank, also said, “Unsold homes in non-metropolitan areas have emerged because the sale prices were too high,” and predicted, “Unsold units will be cleared only after prices of existing apartments rise first.”

However, both experts projected that polarization will likely intensify even within the non-metropolitan housing market, saying, “The unsold inventory will be resolved mainly in metropolitan cities with industrial functions, such as Busan, Ulsan, and Sejong, while other regions will remain sluggish.”

Several urgent sale notices are posted at a real estate agency near Suraksan Station in Nowon District. Photo by Yonhap News

Promoting housing supply, reconfirming the implementation schedule of existing measures

Most of the housing supply measures simply reconfirm the implementation schedule of previously announced plans. The targets of starting construction on 50,000 units, including 18,000 units in the third-generation new towns, and selling 29,000 units in areas such as Godeok-Gangil and Goyang-Changneung are unchanged from the figures announced last year. The abolition of the sunset clause for public urban complex projects, the expansion of floor area ratio relaxations, and the simplification of redevelopment and reconstruction procedures are also follow-up implementation items from the September 7 measures. For modular public housing targeting young people and single-person households, more than 16,000 units will be supplied by 2030. Funding will come from 15,000 units financed by the Housing Fund, with an additional 1,000 units newly funded by the State-Owned Property Fund.

A real estate expert who requested anonymity commented, “A supply of 1.35 million units by 2030 is an exceptionally large volume, and even this year’s target of breaking ground on 50,000 units is not an easy goal,” but added, “Even when such announcements were made, the market showed little reaction, and ultimately this led to the October 15 measures.” In other words, supply signals alone have not produced dramatic effects in stabilizing the market.

The government did not present a specific direction on whether it will extend the measure that excludes multi-homeowners from the heavy capital gains tax surcharge, which has drawn intense market attention. Since the launch of the Yoon Suk Yeol administration, the government has announced at the beginning of each year that it would temporarily suspend the capital gains tax surcharge, but this time it did not include such a plan. The industry sees a possibility that the heavy capital gains tax on multi-homeowners will be reinstated. When recent news reports on this issue emerged, the government stated only that “nothing has been decided yet.” As for the rationalization of real estate taxation, the government merely offered a general statement that it will prepare measures through commissioned research and a task force (TF).