Categorized | International

South Korean Government Looks to Improve Real Estate Market

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The real estate market in Seoul, South Korea has struggled since the global housing crash and financial crisis crippled the nation’s economy in 2008. The nation’s government has recently taken aim at the struggling market with hopes of boosting its performance in the coming years.

The South Korean government unveiled yet another plan to improve the real estate market, with hopes that the new policies will create more opportunities for sales, as well as greater demand overall. The government will drastically cut taxes on home sales. The capital gains tax, which was once as high as sixty percent, will drop to rates that range from six to thirty-five percent depending on the form of sale.

In addition, the nation will enact a new lending program that will target first-time homebuyers. The lending program is expected to help at least fifteen thousand households to qualify for loans needed to purchase their first home.

More lower-income rental properties are also planned for construction in the coming years. These properties will serve to promote growth in the nation’s construction industry, while also providing more affordable rent to a vast array of renters.

Government officials are hopeful that these latest measures will ultimately be successful in helping to turnaround the housing market. Other measures were taken this year to improve the market’s performance, though nothing has been successful as of yet. While this plan is certainly the strongest to be enacted, many analysts are leery as to its overall impact on property market growth due to the failure of previous policies implemented by the government.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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