The Korea Housing Association, the Korea Housing Construction Association, and the Korea Developers Association welcomed the government's housing supply and financial measures announced on August 13, stating that they could promote private housing supply and contribute to market stability.
On the same day, the three associations expressed their approval of the government's "Rapid Housing Supply Plan for Stabilizing the Rental and Sales Market" and "Comprehensive Financial Measures for Real Estate Market Stability," stating, "These measures accurately diagnose the current housing market and recognize the role of the private sector in stabilizing the market."
Regarding housing redevelopment and reconstruction projects, they positively assessed the extension of the PF loan guarantee limit until 2027 and the increase in the acquisition price of rental housing to the level of basic construction costs. They also noted that managing housing loans for actual residents separately from financial institution total management goals, simplifying the bidding process for construction materials, expanding the guarantee for bid deposits, improving the trust-based reconstruction system, and establishing a specialized mediation body for reconstruction projects would help facilitate urban housing supply.
The associations viewed the recognition of funding support for housing supply as "productive finance" and positively evaluated the temporary suspension of capital ratio regulations for private financing to encourage housing supply funding. They also anticipated that raising the PF guarantee supply target, expanding the reduction of guarantee fees, and broadening exceptions for housing loans for sales and rental businesses would improve financing conditions for housing construction and enhance the momentum for private housing projects.
They also gave a positive assessment of the measures to improve conditions for non-apartment supply. The expansion of the building area limit for multi-family and multi-household housing to 1,000 square meters, the relaxed application of community facility area in calculating floor area ratio, and the increase in construction funding limits along with interest rate reductions were all seen as commendable steps. The three associations believe these measures could significantly contribute to revitalizing non-apartment supply, which plays a crucial role in providing affordable housing.
They also evaluated the gradual relaxation of the donation ratio for housing construction projects due to expedited permits, the temporary reduction of development burden fees for residential facilities, and the easing of non-residential facility ratios in mixed-use apartments as necessary measures to expand housing supply.
However, they emphasized the need for the swift passage of housing supply-related bills currently awaiting approval in the National Assembly. The associations stated, "For the expectations surrounding these measures to translate into actual effects in the housing market, prompt implementation of policy measures, including amendments to related laws, is essential."
To ensure smooth policy implementation, they proposed establishing a working group to regularly monitor the progress of policy initiatives and requested additional measures to address unsold properties in local areas that were not specifically covered in this plan. The three associations reiterated their commitment to actively cooperate with government policies to ensure stable housing supply that meets public demand.
* This article has been translated by AI.
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