[새해 달라지는 것들] The real estate system that will change in 2021

The coming year 2021 can be seen as the year to apply the real estate policy announced this year. From next year, the general real estate tax rate will be raised to a maximum of 6%, and the tax system will be mainly changed, such as considering the right to pre-sale as housing when the transfer tax is taxed. We look at the real estate system that is newly implemented or changed next year.

▲ Reconstruction apartment ‘2-year real residence’ application

In the case of reconstruction apartments in the overheated district from 2021, when applying for the establishment of a cooperative for the first time, the cooperative member must meet two years of actual residence as of the date of the notice of the pre-sale application to receive the right to sell. ‘2 years live residence’ is a combined residence, so there is no need to live for two consecutive years.

▲ Significantly strengthened reconstruction safety diagnosis procedure

The management body of safety diagnosis, the first gateway to the reconstruction project, will also be strengthened. Until now, only serious matters, such as falsely writing a safety diagnosis report, were punished, but in the future, fines will be imposed even for poorly written reports. Other details will be revised and implemented from the project that starts safety diagnosis in 2021.

▲ Increase in the median tax rate of capital gains tax

From June 2020, when multi-homed people sell their homes, the heavy tax rate for the transfer tax will increase from’basic tax rate + 10-20%p’ to’basic tax rate + 20-30%p’. The tax rate when selling houses held for less than two years and members’ tenancy rights is also strengthened from 40% to a maximum of 70%. In addition, the tax rate of 70% for holdings less than one year and 60% for holdings for less than one or two years is applied, and most of the gains from transfer are returned to tax.

▲ Enforcement of the jeon/month rent report system

The lease and monthly rent reporting system included in the 3 Lease Act is scheduled to be implemented in June 2021 after system preparation. The jeon/month lease reporting system is a mandatory reporting system for contracting parties, deposits, rent, and rental period within 30 days of the contract, and a final date is automatically given after the report. Any change in the contract must be reported to the local government within 30 days.

▲ Promote realization of published prices up to 90% of the market price

By 2030 for apartment houses and by 2035 for detached houses, the public price is raised to 90% of the market price. The timing of the actualization rate is different for each price range. The plan is to increase the average realization rate of 68.1% in 2020 for apartment houses less than 900 million won to 70% by 2023, and then increase it by about 3%p every year to 90% in 2030. The realization rate of apartment houses in 2020 is 69% and detached houses are 53.6%, which is lower than the target. In this situation, considering that the burden will increase while raising the published price in the long run, the government decided to lower the property tax rate for houses under the official price of 600 million won or less held by single-family single-family houses from 2021 to 2023 by 0.05%p for each tax base section.

Reporter Seonghyun Kim

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