“The issue is not the product but the financial conditions of the buyers,” said Jang Young-ho, president of the Korea Real Estate Marketing Association, in an interview with Aju Economy. He emphasized the need to improve financing conditions for actual buyers to resolve the issue of unsold homes in regional areas. He argued for a distinction between regulations aimed at curbing rising housing prices in the capital area and measures to address unsold homes in the provinces, while also advocating for the protection of existing buyers' loan agreements.
According to the Ministry of Land, Infrastructure and Transport's 'Housing Statistics for August 2026,' the number of unsold homes in regional areas has risen to 49,998, an increase of 1,240 in just one month. This figure represents 72.3% of the total unsold homes nationwide. Among the 28,080 unsold homes across the country after completion, 23,711, or 84.4%, are located in regional areas.
Jang stated, “It is necessary to reconsider whether it is appropriate to regulate the acquisition of unsold homes in regional areas under the same criteria as for speculative multiple home ownership.” The association has proposed to the government to extend the exemption from the housing count for purchasing unsold homes in regional areas to include pre-completion units. They also called for easing area and price requirements, revising the criteria for national and local taxes, and making temporary support measures permanent.
Jang emphasized the need for sustainable policies, stating, “Measures to attract demand should not be temporary but should be made permanent.” He suggested tax reductions on capital gains for first-time buyers of unsold homes and expanding the use of rental purchases for unsold apartments in non-capital areas.
He also stressed that financial regulations should reflect regional conditions. The association has recommended maintaining special provisions for easing the debt service ratio (DSR) for housing loans in non-capital areas and excluding the application of stress rates when acquiring unsold homes in regional areas.
Jang addressed the financing issues faced by buyers who have already signed contracts. He noted that if the regulations change when converting interim loans to final loans, buyers may not be able to borrow the expected amounts.
He pointed out, “If buyers who have already paid the down payment cannot secure the funds for the final payment, they may have to forfeit their down payment or incur losses by disposing of their purchase rights.”
The association has requested that the previous housing loan limits be applied to final loans for projects that had already announced recruitment of residents before the implementation of regulations, and that the criteria for loan-to-value (LTV) ratios and DSR be revised accordingly.
However, Jang noted that the response to applications varies by supply volume and sale price even within regional areas, cautioning against interpreting the success of certain projects as indicative of overall market recovery.
He concluded, “Management for stabilizing housing prices in the capital area and support for resolving unsold homes in regional areas should be distinguished, and tax and financial systems should be refined to enable actual buyers to purchase and move into homes.”
* This article has been translated by AI.
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