Reviewing a grace period for the reduction of the long-term holding deduction... expected increase in real estate listings

The government is considering a plan to allow a certain grace period rather than immediately reducing the special deduction for longterm capital gains tax on real estate transfers. The aim is to ease the phenomenon of reduced listings caused by tax reform and to encourage sales by owners of multiple homes and nonresident owners of a single home. Kim Yongbeom, Chief of the Presidential Policy Office, said on the 19th that the system could be designed so that people can sell at an appropriate time, but if they go beyond that time, the burden becomes greater. This is interpreted as reflecting concerns that if reforms to property taxes and capital gains tax hit the market at the same time, homeowners may not put their properties up for sale. The government has already seen the effect of increased transactions after announcing in advance in May that the grace period for the heavier capital gains tax on multiplehome owners would end. Experts believe that, once again, how many actual listings come onto the market during the grace period will be a key variable affecting housing price trends in major areas such as Seoul.