Kim Moon-soo, the People Power Party presidential candidate, presented real estate policy pledges on the 24th aimed at revitalizing local areas and addressing housing price imbalances. He announced plans to provide 1.53 million empty houses nationwide for free rental to hopeful households, stating that the DSR (debt service ratio) regulation in non-capital regions would be gradually relaxed to resolve the issue of unsold properties in local areas.
The People Power Party Policy Headquarters announced a real estate presidential pledge centered on these details. It shifted focus from a uniform 'supply-oriented' policy to addressing supply-demand imbalances between regions and types and providing support tailored to different classes and generations through regulatory relaxation.
◇Free rental of 1.53 million empty houses nationwide, easing regulations in non-capital regions
The core of this pledge is the '153 Empty House Project'. The plan is for local governments to remodel the 1.53 million empty houses across the country and rent them out for free to young people or retired generations. The idea is to reduce the overcrowding problem in the capital area and rejuvenate local communities. Additionally, an online platform will be created to provide information on empty houses, assisting those who wish to settle in rural areas after retirement or young people looking to move to rural areas.
The problem of unsold properties in local areas will also be addressed. It was promised that LH (Korea Land and Housing Corporation) would directly purchase unsold apartments in local areas. The purchase price and quantity will be flexibly and actively reviewed based on market conditions.
The DSR regulation, which has been uniformly applied, will be gradually relaxed in non-capital regions, and there are plans to promote the activation of CR Real Estate Investment Trusts for purchasing unsold apartments by reducing acquisition taxes by 50% and applying the minimum property tax rate of 0.1% for unsold housing.
In addition, to disperse the demand for 'one desirable housing unit' and facilitate the influx of funds into regions, tax burdens will also be eased. The comprehensive real estate tax will be converted from a tax on quantity to a tax based on value, and the abolition of the additional taxation on multi-homeowners' capital gains tax and the acquisition tax in non-capital regions will be pursued.
◇Introduction of 'white zones' for urban regeneration… a regulatory turnaround
It was announced that 'white zones' (innovation zones) will be introduced to expand housing supply in urban areas. In designated white zones, local governments will have the authority to lift greenbelt restrictions, and urban development plans will be established autonomously.
It was also promised to promote reconstruction and redevelopment to revitalize urban regeneration projects. To this end, measures will be taken to ease the burden of reconstruction levies and establish the 'Provisional Act for Promoting Reconstruction and Redevelopment' to reduce construction costs and facilitate reasonable sale prices. Additionally, the development of underprivileged areas in Seoul, including the upper development of the railway vehicle base, will be expedited.
Revitalization of 46 old new towns in local areas will also commence in earnest during the president's term. It was also noted that the requirement for real occupancy for housing pensions will be abolished to encourage housing supply in urban areas. Along with this, the 'Housing Supply Promotion Act through National REITs (Real Estate Investment Trusts)' will be established to stipulate various types of REITs and general public offering requirements and provide legal grounds for easing land regulations and tax reductions.
Moreover, in studio apartment complexes near universities, the plan is to promote 'half-price monthly rent zones' through easing floor area ratios, allowing young people to live in slightly more affordable housing.
◇Expansion of deposit support for young people and housing cost support for up to 9 years if two children are born
Plans for customized housing supply and support for young people, newlyweds, and the elderly throughout their life cycle were also specified.
For the younger generation, there will be an expansion of the supply of urban-type living dwellings, small apartments, and officetels, as well as a significant increase in rental tax credits, along with expanded rental and deposit support.
For newlyweds, it was announced that there will be an expansion of half-price apartments (land lease residential housing) and equity-type dwellings provided by LH, with support for up to 9 years for rent or interest on loans if children are born, through the '3·3·3 housing program' (3 years upon marriage, 3 years when the first child is born, and an additional 3 years when the second child is born), with an annual supply of 100,000 units. Additionally, there will be efforts to raise income thresholds for newlywed bridging loans (up to 120 million won for couples) and Jeonse (lump-sum rental) funding loans (up to 100 million won for couples).
For the elderly, it was announced that senior towns friendly to the elderly will be supplied in urban areas, and a hybrid model of health and nursing facilities will also be developed. Furthermore, 25% of public housing land will be supplied as coexisting apartments with caregiving facilities, and a 'combined application system' will be introduced to grant special points for couples and their parents living together.
◇Expansion of housing benefits to median income of 50%
The People Power Party also announced plans to expand housing benefits to the median income of 50% and to improve the housing stability of vulnerable groups by reconstructing old public rental housing.
In addition, they promised to establish a real estate statistics system based on actual transaction prices and to overhaul the system to transparently disclose apartment management cost details. They also announced plans to introduce quality management systems in newly built apartments to reduce inter-floor noise and to expand performance reinforcement support projects in existing apartments.