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Ease of re-entry regulations, a good direction, but limited effect of expanding supply

Real estate experts “Different sensible effects by region and complex…Gateway to review the law”

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Real estate experts responded positively to the government’s proposal to ease the recovery system for excess profits in the sense that it eased the levy, which was a stumbling block to the reconstruction. However, the real estate market is experiencing a slump amid the interest rate hike, and the current level of deregulation will have little effect on the rebuilding revival.

On 29 September, the Ministry of Land, Infrastructure and Transport unveiled a plan to ease the recovery system for excess profits from rebuilding. The aim of this plan is to raise the standard for exemption from the reconstruction fee from 30 million won to 100 million won, and to expand the levy rate section from 20 million won to 70 million won.

Real estate experts agreed that it is a desirable direction for reviving reconstruction by reducing the burden of reconstruction, which acted as a stumbling block in the long run.

Ham Young-jin, head of Big Data Lab, Jikbang, said, “There have only been a handful of cases of enforcement of the reconstruction levy, and the market has been constantly demanding a system improvement on the exemption amount and the levy rate section. According to this government announcement, confusion in the rebuilding market will be reduced in the future. ” he analyzed.

Lee Eun-hyeong, a research fellow at the Korea Construction Policy Research Institute, said, “The government’s measures are very positive when viewed as a step towards improving the restoration system. He explained.

Park Won-gap, a real estate expert at KB Kookmin Bank, said, “The reconstruction project, which is currently closed, may speed up to some extent.

Seo Jin-hyeong, co-representative of the Fair Housing Forum (Professor at Kyungin Women’s University), evaluated that this deregulation plan will help speed up the reconstruction project in the downtown area. ”

Although the government has eased rebuilding regulations, it is also noted that the effect of this measure to promote rebuilding is negligible for union members who wish to abolish the recovery system for excess rebuilding profits and external circumstances such as rate increases interest and economic decline. .

Ham Young-jin, Lab Head Since it emerged, it will be limited for the time being that the relief of the reconstruction charge will act as a trigger for house price volatility or affect the inflow of speculative demand.”

CEO Seo Jin-hyeong said, “Fundamentally, the system for recovering excess profits from reconstruction should be eliminated.

Park Won-gap, a real estate expert, said, “There is still a difference in expectations because reconstruction members hope to postpone or abolish the levy.

Research Fellow Eun-hyeong Lee said, “Depending on the size of the levy, the position of union members will vary greatly.” “In particular, in places where the factors promoting reconstruction are greater, such as the metropolitan area rather than provinces and Seoul rather than Gyeonggi-do, the perceived impact will be different because the levy is that large.” analyzed.

The task of passing the amendment to the law still exists in the National Assembly. “Reviewing the law on recovering excess profits from reconstruction requires a review of the National Assembly Act,” said Lab Director Ham.

Expert Park said, “In a situation where it is necessary to amend the law in order to implement the plan to facilitate the process of recovering excess profits from reconstruction, whether the National Assembly passes or not can act as the variable biggest.”

CEO Seo explained, “It’s an improvement plan that doesn’t meet market expectations, but it won’t be easy to negotiate with the opposition parties because the recovery system for the excess profit from rebuilding itself belongs close to the identity of the Democratic Party. .”

By Park Ji-yoon, staff reporter jypark92@edaily.co.kr