1 billion land is 2.4 billion in 7 years… ‘Reward Lotto’, a new city that encourages speculation

294m2 of detached housing land received for 1 billion won in 2013 by a person who owns the land in the Wirye New Town development site in Seongnam-si, Gyeonggi-do was sold for 2.45 billion won, up 1.4 billion won from the purchase price in October last year. Three months ago, similar-sized land was traded for 2.38 billion won.

This is an example of why the employees of the Korea Land and Housing Corporation (LH), who are suspicious of speculation, paid attention to the land in the planned site of the Gwangmyeong Siheung New Town. Owners of 1,000㎡ (based on the metropolitan area, 400㎡ in the local area) are given the right to receive additional negotiated transferable land along with compensation, which emerged as one of the clues to resolve the speculation suspicion.

Hyeopui-transferred residential land is regarded as a’big hit’ as well as the’lotto sales’ that recently hit the pre-sale market. It is supplied inexpensively, so you can expect enormous market gains. There are less restrictions on resale, so you can sell only with a down payment. You can build a house and use it as a reliable countermeasure for retirement after retirement. Instead of housing land, you can choose an apartment sale ticket.

As a compensation method for new city development, even under 1000㎡, instead of cash, you can receive land that allows you to jointly build apartments and shopping centers (large soil), but because the business period is long and the profit rate is not high, preference is lowered.

The qualifications for receiving the suspected transferor’s land are also loose. Since the target audience is the date of public announcement, land can be purchased one day in advance. The public announcement date is usually the date of the government announcement (Gwangmyeong Siheung, last month on the 24th).

1000㎡ is based on individual area. It is only necessary to own a lot of land smaller than 1000m2 and have a combined area of ​​more than 1000m2. Even if it is jointly owned, the same applies to shares of 1,000 square meters or more. If 2 people share 2200㎡ in half, both people receive 1 parcel. This is why LH employees split their stakes to over 1,000 square meters. The type of land does not matter whether it is a forest field or an answer/answer.

Hyeopui-transferred housing site is a multi-family housing with 3-4 floors, with 3-4 households, or a single-family housing site with restaurants on the 1st floor. The pre-sale price is an appraised price that is 10-20% lower than the market price.

Detached housing land, such as the suspected transferor land, is supplied to the general public at appraisal prices, but the quantity is very small, so competition for pre-sale is fierce. Excluding the housing land that is transferred to the agreement, the remaining quantity is sold to the general public.

Park Won-gap, a senior real estate expert at Kookmin Bank, said, “The housing land that is transferred to the agreement is similar to the right to move in for a reconstruction/redevelopment member who is guaranteed a new apartment at a low cost.”

The negotiated transferable land can be resold once after the contract without price limitation. Papers received by the general public can be resold at less than the pre-sale price after payment of the balance.

You can build a multi-family building and earn a salty rental income. The monthly rent of a multi-family house built on a housing site in the Misa district, Hanam-si, Gyeonggi-do, is about 1.1 million won per household. 4 households cost 4 to 5 million won.

If you don’t like the land, you can get an apartment through a special sale. However, this is the case when the owner of the land is homeless.

The benefits of such negotiated transferable housing sites have been much greater than in the second new town. The government raised the level of compensation to reduce residents’ backlash. One resale without price limit introduced a special sale for homeless apartments in 2015 and last year. In January, a legislative amendment to the relevant laws and regulations was announced to ease the pre-sale qualification for 1,000㎡ of negotiated transferable housing in the metropolitan area to 400㎡, the same as in the local area.

Professor Kwon Dae-jung of Myongji University said, “The government has also stimulated speculation by raising the’reward pie’ to facilitate acceptance.” Experts say that system improvement is necessary as a measure to block speculation for new city development. In addition to preventing the transactions of related development agencies such as LH, it is necessary to regulate the transaction of speculative demand from outsiders and strengthen land use supervision.

Currently, it is mandatory to submit an agricultural management plan and prove the farmland acquisition qualification only to acquire farmland that is over 1000m2 (for example, farmland, orchards, etc.). Investigate the actual conditions of use of farmland to ensure that the plan is followed. However, formal and lax, effective operations are needed.

Although there is a land transaction permission zone system as a device that allows only real demand transactions, it is being criticized as a’back north’ as ​​it was applied at the same time as the announcement of the new city’s planned site.

Professor Seo Jin-hyung of Kyungin Women’s University said, “You should not announce the new city as a countermeasure to catch the house price, but instead establish a systematic plan in advance and regulate it as a land transaction permission zone from the candidate stage.”

It is already too late when the story of new city development comes out, so there is a need to move the reference point for compensation far ahead of the current public announcement date. The current homeowner’s compensation standard is one year before the publication date.

Konkuk University professor Lee Hyun-seok said, “If the housing supply policy that relies on residential land development is maintained, the speculation controversy will not cease.” Reporter Ahn Jang-won [email protected]