Suggestions for Vitalizing Housing REITs: Focusing on the Private Sector

Abstract

Among REIT investment types, housing REITs are becoming more influential in the private sector as public support private rental REITs and private rental REITs gradually participate in the public sector. However, after the housing measures on June 17th(2020), the quantitative growth rate of housing REITs decreased remarkably. This is because REITs are operated in the form of a stock company, so they are subject to the same tax regulations as speculative corporations to block speculative demand. The REITs industry carried out policy suggestions, and some of them were reflected in policies. But it's still not enough. Purchase-type housing REITs require the same benefits as construction-type housing REITs. Additional measures are needed to revitalize private housing REITs, such as raising housing rents and realizing normal procedures, the need for unsold housing REITs, and the introduction of housing REITs with local residents. If the above proposed measures are reflected in policy, private participation in housing REITs is expected to increase further.Housing REITs in the private sector will increase the supply of rental housing and play a major role in stabilizing the housing of the common people.