Last year, the domestic real estate market experienced a period of upheaval amidst unstable house prices and real estate measures that the government poured out several times.
This trend is expected to continue this year, when measures announced so far are implemented one after another. Even in the new year, the government came up with additional measures early on. It is the ‘2·4 measure’ that contains plans to supply 320,000 households in Seoul and 830,000 nationwide. There are also areas to be looked at in this measure, with public-led development as the core. If you are planning to arrange a house for yourself or are thinking about changing a house, let’s check the changed system carefully.
Graphic = Reporter Junghee Lee [email protected]
Report must be made within 30 days after the contract
Along with the contract renewal request system and the jeon/month ceiling system, the “pre-rental tax report system,” called the “3rd Lease Act,” will be implemented in June after system preparation. The jeon/month lease reporting system is a system in which contractual matters such as contract parties, deposit, rent, and rental period are reported within 30 days of the contract. Upon notification, a confirmation date is automatically assigned. Any changes in the contract must be reported to the local government within 30 days. If you do not report or make a false report, a fine of 1 million won and 5 million won or less, respectively, will be imposed. Residential officetels are categorized as the subject of notification, but non-housing such as Gosiwon, where a move-in report cannot be filed, are excluded.
Regulations related to defect repair before moving into an apartment have also been strengthened from January this year. Ahead of moving into a new apartment, the related regulations were reorganized as conflicts between residents and construction companies over defect repair continued. Defects found during pre-visit visits to apartments must be repaired by the business entity before the move-in date. Of the general defects, the exclusively-owned part must be taken until the date of delivery to the prospective occupant, and the common part must be taken before use inspection.
Reinforcement of living requirements and safety diagnosis for reconstruction apartments
This year, the government’s regulations on reconstructed apartments will be strengthened. These regulations have not yet been implemented, but it is necessary to know in advance as the passage of the National Assembly is strong in the first half of this year. First, for reconstruction apartments in the overheated district, real residence requirements are added for members. If you apply for the establishment of a cooperative for the first time, you must meet the 2-year residence period as of the date of the announcement of the sale application to receive the sale right.
‘2 years live residence’ is a combined residence, so you do not have to live for two consecutive years. Failure to meet this requirement is classified as subject to cash settlement. This is a regulation that was put in place to prevent speculative demand in reconstruction apartments. An amendment to the Urban and Residential Environment Improvement Act (Provincial Government Act) containing these details is pending with the National Assembly. Among the reconstruction complexes, where a cooperative has not yet been established, it is necessary to apply for permission to establish a cooperative before the law enters into force to avoid the duty to live.
According to the revised bill, the enforcement date of the law begins three months after the promulgation. Since it is highly likely to be dealt with by the National Assembly this year, apartment residents who are pursuing reconstruction must be aware of the trend of law revision.
The management body of safety diagnosis, the first gateway to the reconstruction project, will also be strengthened. The subject of selection and management of the 1st and 2nd precise safety diagnosis will be changed from the existing Si/Gun/Gu to the city/province. This means that the threshold for passing the safety examination is higher.
Housing purchased after February 4, cash settlement for public-led development
The government’s’Public-led 3080+, a plan to dramatically expand housing supply in metropolitan areas’ (2·4 countermeasures), which the government announced on the 4th, also contained content that should be noted. This is because it has decided not to give priority to apartment supply (right to move in) even if public-led development is conducted for real estate purchased after the 4th, the date of the announcement of the measures. The public-led development consists of the’city center public housing complex project’, which develops station areas, semi-industrial areas, and low-rise residential areas, and the’public direct implementation maintenance project’ in which the public is the subject of reconstruction and redevelopment.
The problem is that the targets for these projects have not been decided yet. If a house was purchased after the 4th of this month, and the area is designated as a public-led development area in the future, it may be liquidated in cash, so caution is required. The Ministry of Land, Infrastructure and Transport is planning to prepare amendments to the Special Public Housing Act and the Urban Improvement Act, which contain detailed information about this, by March.
The revised bill contains details such as not applying the 2-year residency obligation for members of reconstruction when participating in the public direct implementation maintenance project, and excluding the reconstruction excess profit return system. In order to block speculative demand, a provision will be put in place stating that even if you own multiple houses in the business site, you can only receive one house for one household. Other houses are cashed out. The Ministry of Land, Infrastructure, and Transport plans to announce candidates for new housing sites with 260,000 households in two or three times in the first half.
Reporter Choi Jin-seok [email protected]