Will Weekend Husband Kim Sell His Home Now? Authorities Review Exit Options for Non-Resident Single-Home Owners

[Financial News] The government has hinted at the possibility of easing land transaction permit rules for non-resident single-home owners, but market watchers largely expect only a limited increase in listings. Analysts say homeowners are more likely to raise monthly rent to ease the burden of holding property than to rush into fire sales.
On the 10th, Land Minister Kim Yoon-deok said on X, formerly Twitter, that exemptions to the land transaction permit requirement for non-resident single-home owners could be considered. The following day, President Lee Jae Myung said the government would push to suspend the residency requirement, while requiring direct occupancy within two years to prevent the policy from being used for speculative gap investments.
As the proposal is being interpreted as similar to past temporary measures that opened an exit for transactions ahead of the end of heavier capital gains taxes on multi-home owners, some in the market are hoping it could trigger a wave of listings.
At the same time, people on the ground point out that the situations of multi-home owners and non-resident single-home owners are fundamentally different. Multi-home owners may need to sell some properties quickly to reduce their tax burden, but single-home owners who do not live in the property would still need to buy a home for their own use after selling, which could limit the number of listings.
Most non-resident single-home owners hold one home for reasons such as work or investment. Since they would still need to secure a home to live in after selling, they have little incentive to cut prices and sell quickly. In particular, sales are already possible in land transaction permit zones if the buyer moves in within four months after disposing of the existing home. Industry watchers say that simply extending the disposal and move-in deadlines is unlikely to lead to a flood of below-market fire sales.
A licensed real estate agent in Mapo District, Seoul, said, "Given the heavy burden of switching homes, it is unlikely that owners will lower prices and rush to sell." The agent added, "They are more likely to raise monthly rent and reduce the burden of holding the property." A broker in Gangdong District also said, "Even when the heavier tax rules for multi-home owners were temporarily suspended, prices rose again after some early fire sales as demand picked up." The broker added, "There are not many listings relative to demand for non-resident single-home properties, so the room for price adjustment will be limited."
The market is, in fact, more worried about possible instability in the rental market. If the residency requirement suspension becomes reality, owners are more likely to respond to tax issues by raising lease prices rather than selling. One real estate expert said, "The market expects an increase in supply, but in reality, owners are likely to continue holding properties by raising monthly and jeonse rents." The expert added, "We should watch more closely for upward pressure on rental prices than for any stabilizing effect on the sales market."
Still, some observers say a certain amount of new listings could emerge. Nam Hyuk-woo of the Woori Bank Real Estate Research Institute said, "Since there are about 830,000 non-resident single-home households in Seoul, some listings could appear if the regulation is actually implemented." He added, "In areas such as the Gangnam area and the Han River Belt, where prices have surged in a short period, listings could come from owners who struggle to raise funds for tenant departure payments." He also noted, "If the calculation method for long-term holding special deductions is changed as well, older single-home owners who do not currently live in their homes may also decide to sell to realize capital gains."
Meanwhile, MOLIT said it is still reviewing the related system and that no specific implementation method or scope has been decided.
going@fnnews.com Choi Ga-young Reporter