Unsold Villa Tax Bills Raise Fears of Shrinking Affordable Housing Supply

Small-scale villa builders are facing the risk of being charged hundreds of millions of won in acquisition tax after failing to sell newly built villa units. According to the original report, the additional tax burden is deepening financial pressure on builders affected by unsold inventory. Villas have served as a housing bridge for lower-income households that find it difficult to enter the apartment market. If the financial strain on these small builders grows, concerns are rising that new villa supply could shrink. A structure in which sales failure leads to tax risk may further weaken supply conditions in the villa market. Source: mk.co.kr