Housing policy experts recommended easing comprehensive real estate tax and capital gains tax burdens for single residential homes at a forum held on the 27th at the Korea Chamber of Commerce & Industry in Jung-gu, Seoul. Professor Kang Seong-hoon of Hanyang University's Policy Studies Department stated that the comprehensive real estate tax burden should be maintained or eased for single residential homes below a certain value to strengthen housing stability. The recommendations aim to protect ordinary residential homeowners while limiting excessive benefits for ultra-luxury properties through deduction caps.
Experts Recommend Tax Relief for Single Residential Homes
Professor Kang stated at the real estate policy forum that "the comprehensive real estate tax burden should be maintained at current levels or eased for single residential homes below a certain value." He emphasized the need to protect ordinary residential single homes as thoroughly as possible by reducing property tax burdens to strengthen housing stability.
Regarding ultra-luxury single residential homes, Kang said "it is necessary to set deduction limits to restrict excessive benefits," adding that "it is important to reach social consensus through various discussions on the standards for ultra-luxury homes."
On capital gains tax, Kang stated that the tax burden should be maintained or eased for single residential homes excluding ultra-luxury properties with large capital gains. He emphasized that "for single residential homes, the long-term holding special deduction level needs to be maintained at current levels," and "there is a need to further ease capital gains tax for single homes held long-term to provide thorough protection."
Kang explained that for non-residential housing holdings, speculative demand should be suppressed through normalization of capital gains tax burdens.
Proposals Address Non-Apartment Supply and Loan Regulations
Professor Jin Mi-yoon of Myongji University Graduate School of Real Estate emphasized the need for comprehensive prescriptions to resolve bottlenecks related to housing supply. Jin stated that "the new construction (shortage) of non-apartments is a serious situation," adding that "as non-apartments have great social value and are an indispensable part of the housing ladder, they should no longer be overlooked."
Jin proposed extending special exemptions from housing count to ease tax burdens and providing additional benefits. She stated that "converting uses for existing idle sites in urban centers is important, and simplifying administrative procedures such as one-stop support to resolve this is crucial."
Kim Young-do, senior research fellow at the Korea Institute of Finance, proposed "expanding policy mortgage support measures and expanding loans for youth" to care for young people.
Regarding the jeonse loan system, Kim pointed out that "although introduced for housing welfare of homeless common people, it is quite often found to be diverted for other purposes contrary to original intentions," citing "the case of jeonse loans for non-residential single homes" as an example.
Kim stated that "regarding jeonse loans, it is natural to prepare gradual reduction measures for such unintended uses," adding that "policy effects will appear differently depending on what technical method is used."
FAQ
What did Professor Kang Seong-hoon recommend regarding comprehensive real estate tax?
Professor Kang recommended that the comprehensive real estate tax burden should be maintained at current levels or eased for single residential homes below a certain value, while setting deduction limits for ultra-luxury single residential homes to restrict excessive benefits.
What proposals were made regarding housing supply?
Professor Jin Mi-yoon proposed extending special exemptions from housing count to ease tax burdens for non-apartment construction, providing additional benefits, and simplifying administrative procedures including one-stop support for converting uses of existing idle sites in urban centers.
