[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 will introduce, for the first time, a "housing repurchase guarantee system" (tentative name) that guarantees buyers the right to resell their homes at a certain price in order to resolve unsold housing inventory in regional areas. The price threshold for the special provision allowing single-home owners to purchase unsold units after completion will be raised from 600 million won to 700 million won. Tax benefits for areas 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.

On January 9, in the "2026 Economic Growth Strategy" announced jointly by relevant ministries, the government unveiled these real estate market stabilization measures. The focus is on supply-driven policies for the greater Seoul area, while regional measures center on supply-demand management.

In particular, regarding unsold housing in regional areas, the government will implement a comprehensive package to boost demand. While previous measures focused on providing liquidity to construction and development companies, this is the first time the government is shifting to a system that directly alleviates buyers' concerns about potential losses.

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 Real Demand Buyers' Anxiety... First Introduction in the Second Half of This Year

The housing repurchase guarantee system, scheduled for introduction in the second half of this year, will grant buyers of regional housing the right to resell their units at a predetermined price. Buyers will have the option to enroll in the repurchase guarantee at the time of contract. If they choose to participate, the repurchase price will be set in advance at 80% to 100% of the sale price, taking into account the location and business feasibility of the housing project.

Participants may apply for repurchase by a real estate investment trust (REITs) if the home price falls after living in the property for a certain period (about 2 to 3 years). A REITs is a company that pools funds from multiple investors to acquire and manage real estate. Even before moving in, buyers may apply for repurchase if personal circumstances make occupancy difficult. An official from the Ministry of Land, Infrastructure and Transport explained, "The aim is to provide a safety net for real demand buyers who want to live in the property but hesitate due to concerns about price declines," adding, "Details such as the required length of residence will be finalized after expert review."

This is the first time the government has implemented a policy directly targeting real demand buyers in regional unsold housing measures. Until now, the focus was on providing liquidity to construction and development companies. For example, the "Regional Unsold Housing Safe Repurchase Program" allowed the Korea Housing & Urban Guarantee Corporation (HUG) to purchase unsold units before completion at 60% of the sale price, providing funds to construction companies, with the requirement that the construction company buy the property back within a year after completion. In contrast, the housing repurchase guarantee system grants the repurchase right directly to buyers. This is a preemptive measure to attract real demand buyers by alleviating fears that they might be unable to sell at a loss if home prices fall in the future.

Similar repurchase programs are already being offered by the private sector. In regional unsold housing complexes in areas such as Gwangju, Jeonnam, Daegu, and Busan, buyers are granted the right to resell within a certain period. These are essentially "insurance-type products" against price declines. The government plans to reference these private sector models but will use REITs to enhance stability. With REITs involved, repurchase is guaranteed regardless of individual construction company bankruptcy risk, and public guarantees can be linked. This system was discussed last year by the National Policy Planning Committee, but this is the first time it has been publicly announced.

Raising the Unsold Housing Tax Benefit Threshold from 600 Million to 700 Million Won Is 'Support Fire'... Effect Over Two Years Has Been Limited

Alongside the housing repurchase guarantee system, the government will also implement a "three-part demand expansion package." This includes tax benefits for housing in areas with declining populations, an extension of tax support for CR REITs, and raising the price threshold for the special provision for unsold units after completion from 600 million to 700 million won.

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

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

Experts believe that while the new policy may help prevent further downturns, the resolution of unsold inventory 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, there is a need for policy direction on the regional unsold housing issue," adding, "As the supply of move-in units decreases, rental prices are starting to rise, which could create demand for purchasing unsold units after completion."

Park Wongap, senior real estate researcher at KB Kookmin Bank, also commented, "The unsold inventory in regional areas is due to high sale prices," and predicted, "The typical sequence will be for existing apartment prices to rise first, followed by the resolution of unsold inventory."

However, both experts noted, "Resolution will mainly occur in major metropolitan cities with industrial functions, such as Busan, Ulsan, and Sejong, while other regions will continue to struggle," predicting that polarization will intensify even within regional housing markets.

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 housing supply measures simply reconfirm the implementation schedules of previously announced policies. The plan to break ground on 50,000 units, including 18,000 in the third phase of new towns, and the supply of 29,000 units in areas such as Godeok-Gangil and Goyang-Changneung remain unchanged from last year’s announcement. The abolition of sunset provisions for public urban complex projects, expanded floor area ratio relaxations, and streamlining of redevelopment projects are all follow-up actions to the September 7 measures. For young people and single-person households, at least 16,000 units of modular public housing will be supplied by 2030. Funding will come from the housing fund for 15,000 units, with an additional 1,000 units funded by the national treasury.

A real estate expert, speaking on condition of anonymity, commented, "Supplying 1.35 million units by 2030 is an exceptionally large volume, and even starting construction on 50,000 units this year is not an easy target," adding, "Despite such announcements, there was little market response, which ultimately led to the October 15 measures." In other words, supply signals have not produced dramatic stabilization effects in the market.

No specific direction was provided regarding the extension of the capital gains tax exemption for multi-home owners, which had been a focus of market attention. Since the start of the Yoon Suk Yeol administration, the government has announced a temporary suspension of the capital gains tax penalty for multi-home owners in its annual economic policy directions, but this was not included this time. The industry believes there is a possibility that the capital gains tax penalty for multi-home owners will be reinstated. When recent reports on the issue surfaced, the government responded that "no decision has been made yet." The plan for rationalizing real estate taxation was only mentioned in principle, stating that it would be prepared through research projects and a task force (TF).