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The government enforces another law that will change the rental market. It is a’residency duty’ for apartments with limited sales price, called the cheonsei ban law. There is high concern that the cheonsei market will disappear in new apartments centered in Seoul, and this will lead to a cheonsei crisis.
However, the government predicts that there will be no concern about cheonsei when the apartments subject to the cheonsei ban law are moving in because the existing supply measures are in operation. The government has pointed out’low interest rates’ and’furniture division’ as to the causes of the jeonse crisis. It is because of the complex situation rather than the government’s measures, including the rental law. In the midst of this, the rent to cheonsei system, which is called the last puzzle of the 3 lease laws, is about to be implemented. Today, we will deliver news related to real estate.
◆Limited apartment for sale in the metropolitan area, you must live for 2 to 5 years
This is the first news. In the future, if you receive apartments in the metropolitan area that apply the ceiling on the sale price of private residential land, you must live for 2 to 3 years after completion. The residence obligation applies to complexes that accept applications for tenants after the 19th. Because tenants cannot be hired during the residency period, it is referred to as the’Jeon Rent Prohibition Act’. If you live somewhere else during the period of your duty of residence and cheat as if you lived in that house, you will be sentenced to one year in prison or a fine of up to 10 million won.
According to the revised bill of the Enforcement Decree of the Housing Act, when an apartment is sold in a private residential area, if the sale price is less than 80% of the local market price, you must live for 3 years, and if 80 to 100% of the nearby market price, you must live for 2 years. Even if a private apartment is built in a public housing, 5 years is applied if the pre-sale price is less than 80% of the nearby market price, and 3 years for 80-100% of the nearby market price. The market is concerned that the period of obligatory residence may reduce the supply of jeon and monthly rent, which may intensify the housing difficulties for tenants. There is also a criticism that it is possible to provide a charter, so that applicants who have insufficient funds cannot even apply.
◆ Before and monthly rent report system, pilots will begin in April… Expanded nationwide in June
The cheonsei and monthly rent reporting system, which is the final puzzle of the’three lease laws’, will begin pilot operation in some areas from April. The lease reporting system is a system that compulsory reporting of jeon and monthly rent contracts as in the reporting system for actual transactions of home sales. Some regions will be selected ahead of the full implementation of the lease (pre-and monthly) reporting system in June.
When reporting a lease, the government is planning to prepare related matters such as moving in, linking the confirmation date, and reporting online. When the lease reporting system is implemented, the landlord must report the rent, down payment, rental period, and intermediate payment to the local government within 30 days. Upon reporting, a confirmation date will be automatically assigned. If you do not report or make a false report, you will be charged a fine of 1 million won and 5 million won or less, respectively.
◆Hong Nam-ki “Announcement of 250,000 public residential land candidates by the second quarter”
The government announced that it would quickly complete the announcement of candidate sites for 250,000 new public housing sites according to the second and fourth measures, starting in the first quarter and until the second quarter. Deputy Prime Minister Hong Nam-ki and Minister of Strategy and Finance said, “If the 2 and 4 measures and the previously announced volume are combined, 2,500,000 homes will be supplied by 2025.” During the global financial crisis, Seoul apartment prices had been greatly adjusted. “It’s time to take a cool look at the long watch.”
The controversy that cash liquidation violates property rights was described as “constitutional party compensation.” He emphasized that “according to the current Land Compensation Act system, compensation for the property of the existing owner is in principle in cash compensation.” The government has announced that it will not give priority to apartments and shopping malls (the right to move in) to those who have bought real estate in public-led maintenance and development projects after the announcement date (4th). However, even if you buy a house without knowing that it will be a development area, you cannot enter a new house and you may have to get out with cash, so there is a strong backlash.
◆ GTX-D route coming out in June
The metropolitan metropolitan express train (GTX)-D route, which connects the western part of the metropolitan area and downtown Seoul, is scheduled to be unveiled in June. The GTX-D route first appeared in the’wide area transportation 2030′ plan by the Metropolitan Area Transportation Committee (Daegwang Committee) of the Ministry of Land, Infrastructure and Transport in October 2019. It is a plan to build an express train in the western part of the metropolitan area, which is marginalized by the three GTX-A, B, and C routes. It is known that plans to connect Incheon and Hanam through Gimpo, Gyeonggi are under consideration. It was reported that the feasibility of the route was being reviewed by receiving proposals for routes from related local governments such as Seoul, Gyeonggi, Incheon, and Gimpo.
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