Land, Infrastructure and Transport Committee to Review 'Abolition of Actual Residence Obligation' on 30th
Government Postpones Implementation of Relaxed Resale Restrictions to April
The 'Partial Amendment to the Housing Act' (hereinafter referred to as the amendment), which will determine whether the actual residence obligation of the buyers of Olympic Park Foreon (Dunchon Jugong Reconstruction) in Gangdong-gu, Seoul, will be enforced, is set to be reviewed.
View of the Dunchon Jugong Reconstruction Site in Gangdong-gu, Seoul / Photo by Hyunmin Kim kimhyun81@
According to the National Assembly on the 28th, the Land, Infrastructure and Transport Committee will review the amendment, which abolishes the actual residence obligation (up to 5 years) for residents of houses subject to the metropolitan area price ceiling system, at the Land Law Review Subcommittee on the 30th.
Under the current law, to block speculative demand and supply housing centered on actual demand, residents of houses subject to the price ceiling system are required to continuously reside for 2 to 5 years from the date they can first move in. This has been an obstacle for buyers to choose a residence suitable for their circumstances or to rent out the property through monthly rent or lease due to difficulty in preparing the remaining payment.
In response, the government announced plans to ease resale restrictions and abolish the actual residence obligation in the January 3rd real estate measures this year, and the amendment was proposed in February. This is a step further than the amendment proposed last August, which only required residence until the house was transferred.
In particular, Olympic Park Foreon, which launched a non-ranking subscription earlier this month following news that existing housing contract holders could also benefit from the amendment, recorded a competition rate of 46.2 to 1, clearly demonstrating the policy's effect. Allowing multi-homeowners to participate in so-called 'jumbub' regardless of their residence area was also effective.
However, even if the amendment passes the subcommittee, no schedule has been set for the plenary session, so it is expected to be considered after April. Meanwhile, the easing of resale restrictions on pre-sale rights, shortened from up to 10 years to 3 years, has also been postponed until next month. Although it was expected to pass the Cabinet meeting today as a revision of the enforcement decree, the government plans to implement it after the National Assembly deals with the abolition of the actual residence obligation.
If both regulations are lifted, the resale restriction period for Olympic Park Foreon will be reduced from the previous 8 years to 1 year. The 2-year actual residence obligation will also disappear. Since the resale restriction period applies from the announcement of the winners, pre-sale rights can be traded before the scheduled move-in date of January 2025.
In addition, a proposal to exclude urban public housing complex projects from the price ceiling system will also be discussed at this subcommittee. This is in response to criticism that applying the price ceiling system uniformly to all project districts causes a 'reversal phenomenon,' where the price for union members is higher than the general sale price.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
