Understanding Pre- and Post-Sale Systems Made Easy... SH Corporation Publishes Policy Report

"To Prevent Poor Construction, Post-Sale System Must Be Activated"

Seoul Housing and Communities Corporation (SH Corporation) has published a policy report comparing pre-sale and post-sale systems and proposing the future direction of the housing sales system.

SH Corporation announced on the 30th that it has published the “SH Policy Report: Comparison of Housing Sales Systems (Pre-sale and Post-sale).” The report is also available on the websites of the corporation and SH Urban Research Institute.

SH Corporation explained, “Following various accidents such as the 2022 collapse of the outer wall of an apartment in Hwajeong, Gwangju, the 2023 collapse of the underground parking lot of an apartment in Geomdan, Incheon, and the 2023 omission of rebar in flat slab structures, interest in the post-sale system has increased. To provide information that anyone can easily understand about pre-sale and post-sale systems and to contribute to improving the quality and image of public housing, we prepared this policy report.”

The policy report consists of ▲ definitions and pros and cons of housing sales systems ▲ history (transformation process) of the post-sale system ▲ policy effect survey and analysis on the post-sale system (perceptions of Seoul citizens and experts) ▲ major issues regarding the post-sale system ▲ and system improvements.

According to the report, unlike the pre-sale system, the post-sale system sells housing when it is almost completed (after 60% of construction progress). SH Corporation explained that the corporation’s “Baeknyeon Jutaek” apartments are those where housing consumers decide whether to purchase after comparing quality, price, and other factors once the apartments are completed.

The report also includes survey results related to the post-sale system conducted among Seoul citizens and experts. In a survey conducted in June 2023 by SH Urban Research Institute (Senior Researcher Oh Jeong-seok and Principal Researcher Jeong Yun-hye) commissioned to Korea Research, 79.6% of 1,000 Seoul citizens responded that the post-sale system is necessary, and 73.6% expressed willingness to purchase housing through the post-sale system.

Additionally, in a survey of experts (159 individuals from academia, public, and private housing supply sectors) conducted by the International Society of Convergent Management, respondents answered that to activate the post-sale system, it is necessary to ▲ diversify financing methods ▲ establish a housing demand estimation system ▲ expand construction fund supply ▲ and increase housing purchase loan availability.

Kim Heon-dong, President of SH Corporation, stated, “To restore the trust of the public who are anxious due to incidents such as the collapse of apartment underground parking lots and omission of rebar in flat slab structures, the public sector must take the lead in activating the post-sale system, which is effective in preventing poor construction. The corporation has been implementing the post-sale system since 2006 and will continue to lead efforts to expand the post-sale system.”

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