HUG reflects the market price up to 90% of the pre-sale price from February 22nd
“In the end, only the’cash-rich’ will receive new apartment sales.”
“If the sale price rises, the price of the existing house also rises… Eventually, taxation”
Apartment view. / Photo = News 1
Homeless people are desperate at the announcement that the Housing and Urban Guarantee Corporation (HUG) will apply a new screening system starting on the 22nd to raise the price to the upper limit of 85-90% of the surrounding market price when evaluating high sales prices. This is to revitalize the supply of private housing through the realization of pre-sale prices and to prevent’lottery subscriptions’ compared to the surrounding market prices, but homeless people believe that it will be difficult to receive new apartments due to the rise in pre-sale prices.
On the 14th, the Cheongwadae National Petition Bulletin board has posted posts that have been filled since the announcement of HUG. They waited for an apartment subscription as a homeless, but now they will not be able to handle the increased sales price. There is also a prospect that only’cash-rich’s can subscribe in the future as loans are blocked.
“Thunderbolt, homeless, can’t even sell apartments anymore”
One petitioner argued that the move was “making the waiting of homeless people in vain.” He said, “If the sale price in the high sale price management area is sold at 90% of the market price, there is a possibility that it will be sold at 100% if you include the option fee as well as the apartment sale price,” he said. “Anyone can live in an apartment right now. “Will I wait 2-3 years to live in an apartment with a 10% lower resale limit?”
It also suggested that it could lead to a vicious cycle. He said, “If the sale price of the house is supplied at a price that is not much different from the market price while the supply of the house is insufficient, it is highly likely to lead to the purchase of the existing house,” he said. “If the number of existing houses increases, the market price rises and the sale price increases accordingly. It was a vicious circle.” He added, “The increase in pre-sale prices is a measure only for the’cash-rich’ and deprives the homeless people of the opportunity to make their own homes cheaper.”
HUG is planning to implement a proposal to improve the rules for high pre-sale prices starting on the 22nd. / Source = HUG press release
Another petitioner who introduced himself as a’thunderbolt homeless’ also criticized it as “a government kicking the ladder that is left by the common people.” He said, “The hopes of many people who have been waiting for more than 10 years to subscribe to the moneyless people have been kicked out,” he said. “The pre-sale price that used to be 500 million won can be 1 billion, and 1 billion is not loaned, but the money to be paid and the down payment intermediate I don’t have it, so I think I have to give up even if I win.”
He said, “If you really care about the common people, please announce it by lowering the reflecting rate of high-selling prices,” he said. “The reverse idea of raising sales prices to increase supply is an unimaginable policy, and a truly embarrassing policy to burn all the common people “I appealed.
“To increase the supply and raise the sale price…a shameful policy”
In addition, this measure of HUG does not apply to regions with the pre-sale price limit, but some believe that pre-sale prices will increase to local areas. HUG has significantly increased the number of high pre-sale management areas since the Ministry of Land, Infrastructure and Transport announced on December 17 last year to expand the regulated areas to local areas. In Seoul, Gyeonggi, and Incheon, all regions are covered except for some. In local metropolitan cities, it includes Busan (excluding Jung-gu and Gijang-gun), Daegu (excluding some of Dalseong-gun), all areas of Gwangju, all areas of Daejeon, and Nam-Jung-gu, Ulsan. In addition, Sejong, Cheongju, Cheonan, Nonsan, Gongju, Jeonju, Changwon, Pohang, Gyeongsan, Yeosu, Gwangyang, and Suncheon became the management areas of the old houses.
A management area for high sale prices announced by HUG in December last year. Most of the major cities across the country were included. / Data=HUG
Most of the major cities and residential areas across the country were covered. This is why there is a prospect that the HUG’s action will increase the price of homes as well as local pre-sale prices. Due to regulations such as the areas subject to adjustment, the LTV (housing mortgage ratio) in these areas has shrunk to 40-50%. In addition, if the pre-sale price increases according to HUG’s policy, the necessary funds will inevitably increase. Now, in the provinces, the apartments can only be supplied only when they have financial resources.
HUG said it would exclude Seoul and public housing areas where the ceiling on pre-sale prices applies. However, in areas subject to the upper limit on pre-sale prices in Seoul and the metropolitan area, the cheonsei ban law will take effect on the 19th. The person who received the sale cannot afford to rent the jeonse and must live in person. In exceptional circumstances where you cannot live directly, you must hand it over to LH (Korea Land and Housing Corporation) as a sale price. In other words, it means that you can receive the sale only if there is no problem in financing. Homeless people who want to use the charter as a residential ladder to make time and prepare their own home have become difficult to sell new apartments in Seoul.
Ju San-yeon “Like the HUG improvement, the pre-sale price cap system should be improved”
In the midst of this, the Korea Housing Industry Research Institute analyzed that “more than 200,000 apartments are on hold as a side effect of forcing the sale price of private apartments to be cut excessively in the name of reducing the risk of pre-sale guarantees for the past three years.” This is an interpretation that the supply of 200,000 households will be possible by HUG releasing the pre-sale price.
Statistical data suggesting that the shortage of housing supply is due to regulations on pre-sale prices. / Source = Joo San Yeon
San-yeon Joo argued, “While evaluating the improvement of HUG’s pre-sale price screening criteria, the pre-sale price screening criteria of the private pre-sale price limit should be improved to a level similar to that of HUG.” The upper limit system for pre-sale prices should be raised enough to meet the market price.
HUG said that it changed the screening criteria, saying that it is’effective for housing supply’, but the timing is subtle. This is because the pre-sale price ceiling system has been implemented, and the pre-sale price of HUG is starting to come out high, and subscribers are also crowded under the condition of self-payment of intermediate payments.
Last month,’Raemian One Bailey’ in Seocho-dong, Gangnam-gu, Seoul was a representative example. As the pre-sale price cap was applied, it was higher than the pre-sale price suggested by HUG. The maintenance industry is predicting that the ceiling of the pre-sale price will be able to receive more pre-sale prices according to the increase in the cost of housing, saying, “It is no longer necessary to watch HUG’s attention.”
The pre-sale price of’Godeok Gangil Jeil Pyeonggyeongchae’, which is scheduled to be sold in public housing in Gangdong-gu, was decided at 24,298,000 won per 3.3 square meters, even though the pre-sale price limit was applied. The pre-sale price of 84m2, which is exclusively selected as an additional store, will be set at the beginning of 800 million won, and the exclusive 101m2 with lottery will be set at 900 million won. If the sale price exceeds 900 million won, you cannot get an intermediate payment loan.
An industry insider said, “If the sale price rises due to the change in the HUG screening system, it will be more difficult for homeless people to prepare their own homes. If the subscription competition rate drops and the addition points fall, it will be a better condition for cash-rich people to receive sales in sale.” Expected.
Another official said, “If the price of a house falls below the pre-sale price, it is rare except for the situation like the economic crisis. Raising the pre-sale price is like saying that you are going to raise the price of the house.” It’s about to be heard.”
Hankyung.com reporter Kim Hana [email protected]