Daegu City proposes ‘customized prescription for local housing market’ to the government

Daegu City announced on the 11th that it had proposed a housing policy to the government to normalize the local housing market.

The city recently delivered financial, tax, and housing policy tasks to the relevant ministries, including the Financial Services Commission, the Ministry of Finance and Economy, and the Ministry of Land, Infrastructure and Transport.

It was proposed to the Financial Services Commission that the stress DSR (interest rate) not be applied to local areas or at least be maintained at the current level for end-users who are having difficulty raising funds when purchasing a home due to high interest rates and strengthened household loan management.

Regarding the tax system, it was proposed that the deadline for applying special tax treatment for unsold properties after completion of local construction should be further extended rather than limited to a one-year extension as is the current government plan.

Regarding housing policy, it includes raising the purchase price of unsold properties (up to 100%) after completion of local construction by LH (Korea Land and Housing Corporation), which is up to 90% of the current appraised value.

Daegu City plans to additionally propose expanding preferential interest rates on policy loans when purchasing unsold homes, preferential allocation of project financing guarantees to local businesses, including metropolitan city centers in second home tax special treatment, and exempting excess profits from local reconstruction.

Kim Byeong-hwan, director of Daegu City's Building and Housing Bureau, said, "As instability in the local housing market and slump in the construction economy are likely to undermine the vitality of the overall national economy, I hope that they will be actively reflected in government policies."