[단독]150,000 units + α housing supply… Reconstruct excess profit redemption system

Review of temporary allowance for reconstruction and redevelopment projects
Can designate new housing sites such as Gwangmyeong, Siheung, and Gimpo

Exclusive[아시아경제 장세희 기자]The government is planning to come up with super-strong measures this week to reduce the reconstruction burden to vitalize the housing supply. If the members have gained profit through reconstruction, they will have to pay up to 50% of the profits after subtracting the increase in nearby house prices and expenses. The interpretation that this is a reversal of the government’s policy of thorough redemption of real estate profits so far is weighed on the interpretation that it gave a clear supply signal. President Moon Jae-in previously suggested a drastic countermeasure, saying, “We will come up with special measures for real estate supply such as strengthening incentives.” The government also plans to supply ‘150,000 units + α’houses to the metropolitan area, including the subway station area, semi-industrial areas, and the creation of new housing sites in downtown Seoul.

According to related ministries such as the Ministry of Land, Infrastructure and Transport and the Ministry of Strategy and Finance on the 1st, the government will announce the 25th real estate measure based on such contents on the 4th.

A government official said, “We are reviewing various deregulation measures for the supply of housing in downtown Seoul,” and said, “We will first remove regulations such as the reconstruction excess profit return system in order to induce reconstruction activation.”

The key to deregulation on the reconstruction excess return system is to lower the rate of contributions to revitalize reconstruction. Currently, if the excess profit per capita exceeds 30 million won, the tax is progressively taxed according to the levy rate increasing by 10% for each section, but lowering the levy rate for each section also lowers the maximum levy rate. As development profits must be shared appropriately for smooth housing supply, the government believes that a decrease in the payment rate will increase the participation of the public as well as the private sector, which will induce reconstruction incentives.

The redemption system for excess profits from reconstruction was implemented in 2006 during the Roh Moo-hyun administration. The intention was to collect excess profits from the reconstruction project to prevent privatization of development profits, and to stabilize housing prices and promote social equity.

Professor Kwon Dae-jung of the Department of Real Estate at Myongji University said, “Because the excess profit redemption system is applied only to reconstruction, lowering the ratio seems to have some effect.” I need to lower it,” he said.

As President Moon emphasized at a New Year’s press conference last month that “we must supply beyond the level expected by the market through drastic development of new residential lands,” the creation of new residential lands is expected to include some. Currently, Gwangmyeong and Siheung districts are mentioned as places where more than 100,000 households can be supplied, and the Goyang-si area and Gimpo Gochon are also among the leading candidates.

In addition, the central government also temporarily grants permission for reconstruction and redevelopment projects, which were granted only to the heads of local governments, to speed up supply security through reconstruction and redevelopment. A plan to lower the rate of resident consent by 75% based on the establishment of a reconstruction association is also being discussed.

Reporter Jang Se-hee [email protected]