[2026 Growth Strategy] Easing Fears of "Unable to Sell at a Loss"... First Introduction of 'Repurchase Guarantee' for Unsold Regional Homes

Yoon Administration Announces 2026 Economic Outlook
Easing End-User Anxiety to Restore Buyer Sentiment
Raising Unsold Home Tax Benefit to 700 Million Won, Extending CR REITs
Supply Plans for Third-Phase New Towns and Others Reconfirmed as 'Roadma

The government is introducing, for the first time, a “housing repurchase guarantee system” (tentative name) that ensures buyers in provincial areas the right to resell their homes at a predetermined price in order to address the issue of unsold housing outside the Seoul metropolitan area. The price threshold for the special provision on unsold homes after completion for single-home owners will be raised from 600 million won to 700 million won. Tax incentives for regions with declining populations and support for Corporate Restructuring Real Estate Investment Trusts (CR REITs) will also be extended. On the supply side, the government plans to break ground on 50,000 housing units this year, including 18,000 units in the third phase of new towns.

In the “2026 Economic Growth Strategy” announced jointly by relevant ministries on January 9, the government unveiled these real estate market stabilization measures. The focus is on supply-driven policies in the Seoul metropolitan area and supply-demand management in provincial regions.

In particular, with regard to unsold homes in provincial areas, the government will implement a comprehensive package to stimulate demand. While previous measures focused on providing liquidity to construction and development companies, this new approach-introduced for the first time-aims to alleviate the risk of loss for 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 Net' to Ease End-User Anxiety...First Implementation in the Second Half of This Year

The housing repurchase guarantee system, targeted for introduction in the second half of this year, gives buyers of new homes in provincial areas the right to resell their property at a predetermined price. Buyers can choose whether to enroll in the repurchase guarantee at the time of signing the sales contract. If they opt in, the repurchase price is set in advance at 80% to 100% of the sale price, considering factors such as location and project viability.

Enrolled buyers can apply for repurchase by a real estate investment trust (REIT) if the home price drops after living in the property for a certain period (about 2 to 3 years). A REIT is a company that pools funds from multiple investors to purchase and manage real estate. Even before moving in, buyers can apply for repurchase if they are unable to reside in the home due to personal circumstances. A Ministry of Land, Infrastructure and Transport official stated, "The aim is to provide a safety net for genuine end-users who want to live in the property but hesitate due to concerns over falling home prices," adding, "Specific details such as the required residency period will be finalized after expert review."

This is the first time a policy directly targeting end-users has been included in the government’s measures for unsold homes in provincial areas. Previously, the government focused on providing liquidity to construction and development companies. For example, the “Provincial Unsold Home Repurchase Assurance Program” allowed the Korea Housing & Urban Guarantee Corporation (HUG) to purchase unsold homes before completion at 60% of the sale price, providing funds to construction companies, and then required the construction company to repurchase the homes within a year after completion. In contrast, the new housing repurchase guarantee system grants the repurchase right to the homebuyer, aiming to attract genuine demand by alleviating concerns that "if home prices fall later, you might not be able to sell without taking a loss."

The private sector has already implemented similar repurchase programs. In regions such as Gwangju, Jeonnam, Daegu, and Busan, buyers are granted repurchase rights allowing them to resell their homes within a certain period-a type of "insurance product" against falling home prices. The government plans to reference these private sector cases but will use REITs to enhance stability. With REIT involvement, repurchase is guaranteed regardless of individual construction company defaults, and public guarantees can be linked. This system was discussed by the National Policy Planning Committee last year, but this is its first public announcement.

Raising the Unsold Home Tax Incentive Threshold from 600 Million to 700 Million Won: 'Supporting Fire,' But Limited Effect Over Two Years

Alongside the housing repurchase guarantee system, the government will also pursue a “three-pronged demand expansion package”: special tax incentives for homes in regions with declining populations, extension of tax support for CR REITs, and raising the price threshold for the special provision on unsold homes after completion for single-home owners (from 600 million to 700 million won).

The newly added measure is the increase in the price threshold for the special provision on unsold homes after completion. When a single-home owner acquires an additional unsold home after completion in a non-metropolitan area, the threshold for applying the single-home owner special provision will be raised from 600 million won to 700 million won. Those who qualify will receive benefits such as capital gains tax exemption up to 1.2 billion won and a basic property tax deduction of 1.2 billion won.

However, the effect of the existing special provision has been limited. Since January 2024, the government has applied the single-home owner special provision to acquisitions of unsold homes after completion (exclusive area of 85 square meters or less, acquisition price of 600 million won or less) in non-metropolitan areas. However, as of the end of November last year, the number of unsold homes after completion nationwide was 29,166-the highest since March 2012. Most of these are in provincial areas such as Daegu and North Gyeongsang Province. Despite various incentives, the number of unsold homes has continued to rise rather than decrease.

Experts believe that while the new policy may help prevent further downturn, the resolution of unsold homes will ultimately depend on market supply and demand. Ham Youngjin, head of the Real Estate Research Lab at Woori Bank, said, "With local elections approaching, it is necessary to set a policy direction for the issue of unsold homes in provincial areas," adding, "As the supply of new homes decreases, jeonse (long-term rental) prices are starting to rise, and if they go up, there could be demand to purchase unsold homes after completion."

Park Wongap, chief real estate research fellow at KB Kookmin Bank, also commented, "Unsold homes in provincial areas are a result of high sale prices," adding, "The usual sequence is that existing apartment prices rise first, and then unsold homes are absorbed."

However, both experts predicted that the absorption of unsold homes would mainly occur in major metropolitan cities with industrial functions such as Busan, Ulsan, and Sejong, while other regions would remain sluggish, suggesting that polarization may intensify even within the provincial housing market.

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 Implementation Schedules for Existing Measures

Most of the measures in the housing supply sector simply reconfirm the implementation schedules previously announced. The targets of breaking ground on 50,000 units, including 18,000 in the third phase of new towns, and selling 29,000 units in Goduk Gangil and Goyang Changneung remain unchanged from last year’s announcement. The abolition of the sunset provision for public urban complex projects, expansion of floor area ratio relaxations, and streamlining of redevelopment projects are also follow-up measures to the September 7 policy package. For young people and single-person households, more than 16,000 modular public housing units will be supplied by 2030, with 15,000 funded by the housing fund and an additional 1,000 by the national property fund.

A real estate expert, speaking on condition of anonymity, commented, "The target of 1.35 million units by 2030 is exceptionally high, and even the goal of breaking ground on 50,000 units this year is not easy," but added, "Despite such announcements, there has been little market response, which eventually led to the October 15 policy package." This indicates that supply signals have not produced dramatic effects in stabilizing the market.

No specific direction was provided regarding the extension of the temporary suspension of the heavy capital gains tax on owners of multiple homes, a measure that had drawn significant market attention. Under the Yoon Suk-yeol administration, the government had announced a temporary suspension of the heavy capital gains tax at the beginning of each year, but this was not included this time. The industry believes there is a possibility that the heavy capital gains tax on multiple-home owners could be reinstated. When recent media reports emerged, the government responded by saying, "No decision has been made yet." Plans for rationalizing real estate taxation were only mentioned in principle, with further details to be developed through research projects and a task force.