By Nikki De Guzman:
To improve its economy, South Korea recently rolled out new measures allowing first-time home buyers to borrow more at a lower interest rate provided they do so from a government-run fund, reported The New York Times.
Buyers are also exempted from paying capital gains tax over the next five years if they purchase a house valued at KRW909 million (S$1.01 million) or less.
The report added that the Ministry of Land had scrapped plans to raise capital gains tax, which normally ranges between six and 38 percent, to 60 percent for multiple home buyers.
This announcement comes amid a faltering economy and escalating tensions with North Korea. Last year, economic growth fell to two percent from 3.7 percent in 2011.
Ranked the 4th largest Asian economy, South Korea is among several regional countries wrestling with property policies. Just last weekend, China’s major cities introduced comprehensive regulations to cool rising home prices.
Nikki De Guzman, Junior Reporter at PropertyGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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