Gyeonggi-do Proposes Special Act on 'Sale-Type Basic Housing' to Ministry of Land, Infrastructure and Transport

[Asia Economy Reporter Hwang Yoon-joo] Gyeonggi Province announced on the 11th that it has proposed to the Ministry of Land, Infrastructure and Transport the enactment of a special law to supply 'sale-type basic housing' that strengthens public interest more than the current land lease sale housing.

The proposal includes ▲ prohibition of third-party resale ▲ extension of land lease period to 50 years and mandatory residence period to 10 years ▲ social return of asset value appreciation gains ▲ setting standards for resale prices considering surrounding housing prices and appropriate land lease fee adjustments ▲ establishment of land stockpiling REITs, among others.

Land lease sale housing was supplied in Seocho-gu, Seoul in 2011 and Gangnam-gu in 2012, but after the 5-year resale restriction expired, private transactions occurred, resulting in speculative use as the market price exceeded the sale price by more than six times.

In response, the province announced on the 17th of last month that it would introduce 'sale-type basic housing,' which supplements the existing land lease sale housing system by requiring resale after the mandatory residence period to be repurchased only by public institutions.

Son Im-seong, Director of Urban Policy at Gyeonggi Province, said, "We aim to increase housing supply while eradicating speculation by maintaining the advantages of existing land lease sale housing and introducing a public repurchase method," adding, "We also plan to separately propose revisions to related laws and guidelines such as the Public Housing Special Act, Housing Act, and Local Public Enterprises Act to the government."

This content was produced with the assistance of AI translation services.