The government is considering extending the special treatment of "mandatory residence" for houses in the Land Transaction Permit Zone, which ends at the end of this year. This is a measure to resolve the discrepancy between real estate tax policies that induce housing sales, such as capital gains tax reduction and mitigation, and the Land Transaction Permit System. The goal is to expand the scope of saleable houses by extending the mandatory residence grace period and updating the rental reference date, and to smoothly facilitate housing disposal due to tax revisions. However, as there are concerns that easing special treatment requirements could stimulate speculative demand, authorities are struggling with the details. The government also plans to prepare follow-up measures such as housing supply and financial measures in response to the announcement of the tax law revision.
