The amendment to the Housing Act Enforcement Decree was approved by the State Council… 1 year for overpopulation control areas, 6 months for metropolitan cities
Effective from the 7th retrospective application … Basis for resale of ‘Dunchon Jugong’ from December this year
Because the ‘mandatory residence rule’ is maintained, transactions are only possible after two years of residence before the law is reviewed in the National Assembly.
From the 7th, the maximum period of 10 years for the resale of flats in the metropolitan area will be shortened to 3 years. Non-metropolitan areas are reduced to one year.
With the revision of the Enforcement Decree, a basis has been prepared for subcontractors of Foreon Olympic Park (Dunchon Jugong reconstruction) in Gangdong-gu, Seoul to buy and sell sales rights from December this year. However, in order to actually resell the lot correctly, the law that eases the two-year residency obligation must first be amended.
The Ministry of Land, Infrastructure and Transport announced that a partial amendment to the Housing Act Enforcement Decree had been approved at a cabinet meeting on the 4th.
The government abolished the current method of designating a resale restriction period for each of the overheated speculation areas, areas subject to adjustment, areas subject to the sales price ceiling system, and private residential areas, and simplified r designation targets for public housing areas, which are regulated. areas, congestion control areas, and other areas.
In the metropolitan area, the resale restriction period is relaxed to 3 years for public housing and controlled areas, 1 year for overconcentration control areas, and 6 months for other areas. In non-metropolitan areas, public housing and controlled areas are mitigated to 1 year, and metropolitan areas to 6 months. In other regions, resale restrictions will be abolished entirely.
For example, if the sales price of apartments sold in Gangnam 3-gu (Gangnam, Seocho, Songpa) and Yongsan-gu, Seoul, which are overheated speculative areas to which the sales price ceiling system applies, is less than 80% of market price, up to 10 years resale restrictions applied. However, in future, the ‘differential application of the period of restriction on resale according to the selling price compared to the market price’ will disappear and the restriction on resale will be reduced to 3 years.
This relaxation of the resale restriction period is also applied retrospectively to houses supplied prior to the publication and enforcement of the amendment. As a result, the resale restriction period for Olympic Park Foreon, which is currently an unregulated area but remains a congestion management area, will be significantly reduced from 8 years to 1 year . Gangdong-gu was raised from the controlled area through the last 1·3 measures, and was also out of the area where the selling price limit was set.
As the resale restriction period is applied after the announcement of the winners, Olympic Park Foreon, who announced the winners in December last year, will be able to resell the lot from December this year. Foreon’s move-in date is January 2025. However, the ‘compulsory residence rule’ remains as it is, so even if the resale restriction is lifted, the property can only be sold after two years of actual residence. right to sell the lot.
In the case of the restriction on resale, which is an amendment to the enforcement ordinance, it is applied retroactively to complexes sold before the publication of the 1st and 3rd measures, but the obligation to live in houses that subject to the sale price limit in the revised Housing Act You cannot even sell the concession.
In the case of Olympic Park Foreon, as Gangdong-gu was lifted from the regulated area at midnight on January 5, the resale limit was shortened to one year.
In this regard, the Ministry of Land, Infrastructure and Transport intends to consult with the National Assembly so that the relevant law can be passed as soon as possible. If the law is amended before the move-in date only, prospective occupants of Foreon Olympic Park will be able to avoid the obligation of actual residence.