Proposed Bill to Ease Mandatory 'Immediate Move-In' for Bunsangje Houses... "Securing Jeonse and Wolse Supply"

Assemblyman Kim Jeongjae Proposes Partial Amendment to the Housing Act
Requirements to Be Met Only Until Sale Before Immediate Move-In

Photo by Yonhap News

A bill has been proposed to ease the 'mandatory residence for up to 5 years from the initial move-in date' requirement imposed on buyers of housing subject to the price ceiling system. Currently, depending on the sale price relative to the market price, a mandatory residence period of 2 to 5 years is imposed immediately from the initial move-in date. Going forward, the residence period must be fulfilled only until the property is transferred, inherited, or gifted, rather than immediately. The intention is to encourage new supply to enter the rental market.

On the 24th, Kim Jeong-jae, a member of the People Power Party, announced that he had taken the lead in proposing the 'Partial Amendment to the Housing Act' and the 'Partial Amendment to the Special Act on Public Housing' to improve unreasonable regulations that restrict freedom of residence for the sake of national housing stability.

This bill, part of the real estate normalization measures announced by the Ministry of Land, Infrastructure and Transport on the 16th, aims to update the residence obligation regulations for housing subject to the price ceiling system and ensure fair compensation for residents during redevelopment of shantytowns.

The residence obligation for occupants of housing subject to the price ceiling system was introduced to block speculative demand for public sale housing supplied at prices lower than market value and to prioritize supply to genuine demanders.

However, contrary to its original purpose, once a unit is purchased, residents are forced to live there from the initial move-in date, restricting their choice of residence for up to 5 years. Moreover, since tenants cannot rent out the property during the mandatory residence period, there were concerns that rental listings for newly built apartments would dry up, leading to the nickname "rental ban law."

In response, Representative Kim said, "I have taken the lead in proposing the 'Partial Amendment to the Housing Act' to improve the system so that the residence obligation is fulfilled only until the property is transferred, thereby expanding the supply of rental housing in the lease market."

The main points of the Housing Act amendment include ▲allowing non-continuous residence periods to count toward the residence obligation ▲clarifying that the project owner can be the subject of a supplementary registration allowing the resident to transfer the property after fulfilling the residence obligation ▲allowing the residence obligation to be canceled after confirmation of residence by the head of the local government ▲applying the amendments to all obligated residents before and after the law’s enforcement.

Additionally, regulations restricting the residential choices of shantytown residents will also be improved.

For the smooth progress of public housing projects in shantytowns, it was pointed out that not only shantytown residents but also land and housing owners whose land was unilaterally acquired at low prices should receive fair compensation for resettlement.

Accordingly, Representative Kim also took the lead in proposing the 'Partial Amendment to the Special Act on Public Housing' to allow land and housing owners in shantytowns to receive compensation in kind, such as housing occupancy rights.

The main points of the amendment to the Special Act on Public Housing include ▲maintaining the current residence obligation for equity accumulation and profit-sharing type sale housing ▲introducing special provisions allowing landowners in public housing district development projects, including densely populated shantytown areas, to be compensated in kind with buildings.

Representative Kim said, "Housing supply is paramount for national housing stability. Through this amendment, which improves unreasonable regulations restricting residential choice, we expect an increase in rental listings for public sale housing and an expansion of housing supply."

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