Impact of Second Home Tax Benefits on the Construction Industry
Interactive Dashboard for Market Analysis and Future Outlook
Executive Summary
The government's 'Local-focused Construction Investment Reinforcement Plan' is more than a simple stimulus; it's a robust policy defense against potential systemic risks. This report analyzes the multifaceted impact of this policy, centered on tax benefits for second homes. The analysis reveals a clear strategic divergence between companies like GS E&C, aiming for direct benefits through aligned business models, and those like Hyundai E&C or Gyeryong Construction, expecting indirect gains from expanded SOC investment and improved market sentiment. While the policy's success will contribute to market stabilization amidst macroeconomic uncertainty, a full-scale industry recovery will heavily depend on external variables such as interest rates and consumer confidence.
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Source : https://bboongfree.blogspot.com/
Policy Analysis: Local-focused Investment Plan
The government has announced a multi-pronged stimulus package focusing on three pillars: demand promotion, public investment acceleration, and cost burden reduction. Click on each policy to learn more.
① Second Home Tax Benefits
A key policy to attract external demand to the sluggish local real estate market.
- ▶ Expanded Target Areas: Includes 'population decline concern' areas (e.g., Gangneung, Sokcho).
- ▶ Relaxed Price Caps: Raised for capital gains/property taxes (to ₩0.9B) and acquisition tax (to ₩1.2B).
② Unsold Housing Support
A supply-side measure to alleviate liquidity burdens on construction companies.
- ▶ Tax Incentives: 1-year extension for single-homeowner benefits, 50% acquisition tax cut (1 year).
- ▶ Expanded Public Purchase: LH purchase volume increased from 3k to 8k units, price raised.
③ Public Investment Acceleration
Aims to directly invigorate the construction economy by speeding up large-scale public projects.
- ▶ SOC Project Boost: Preliminary feasibility study threshold raised from ₩50B to ₩100B.
Market Outlook: Sentiment and Indicators
Despite government stimulus, the sentiment in the construction industry remains cold. Check the market sentiment through the Construction Business Survey Index (CBSI) trend and review forecasts from major institutions.
Construction Business Survey Index (CBSI) Trend
The CBSI remains well below the baseline of 100, indicating persistent pessimism in the industry.
Major Construction Company Comparison
Compare major construction companies with different business models and financial health. Click the buttons below to select companies for comparison. Their key financial metrics will be displayed on the radar chart.
Level 1 Key Financial Metrics (2024)
Scenario-based Outlook for H2
We've constructed three scenarios combining policy effects and macroeconomic variables. Check the outlook for the construction industry and major companies under each scenario.
| Company | Revenue/Profit Outlook | Valuation Band |
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Perspectives of 11 World-Class Investors
How would legendary investors view the current Korean construction industry? Click on each investor's name to see their investment philosophy and analysis.
