The government is expected to announce supply countermeasures this week, which are likely to include support measures for additional relocation loans for renovation projects. Currently, relocation loans for renovation projects are available through HUG's public guarantee, but loan limits have been restricted due to the June 27 loan regulations and the October 15 measures, making it difficult to proceed with the project. In response, the government plans to establish a new loan guarantee product for additional relocation expenses for renovation projects at the Housing Finance Corporation (HF) to provide loans at lower interest rates and increase loan limits by changing the collateral appraisal value from the pre-demolition asset value to the post-completion asset value. Discussions are also underway on a plan to allow principal repayment for housing units purchased by housing construction companies for the purpose of new construction and apply an LTV of 70% to expand non-apartment construction.
