"Mandatory Post-Occupancy Sales System Needed... Should Be Implemented Starting with Public Project Developers"

Advantages of Consumer Protection Such as Post-Construction Sale System and Housing Quality
SH Corporation Recruits Residents at 90% Construction Completion
Opinions on Gradual Expansion from Public Priority to Private Sector
"Need for System Improvement Suitable for Post-Construction Sale Including Financial Support"

A proposal has emerged to consider mandating housing developers to expand housing supply through a post-sale system. Experts suggested prioritizing implementation in the public sector first, supported by financial system improvements to alleviate the burden on suppliers such as construction companies.

On the 26th, the "Policy Forum on Sales System for Improving Housing Construction Quality," hosted by the offices of Assemblymen Ahn Cheol-soo and Bok Ki-wang and organized by Seoul Housing & Communities Corporation, the International Society of Convergent Management, and the Federation of Korean Economic Justice, was held at the National Assembly Members' Office Building. From the seventh person on the left, participants of the forum, including Kim Heon-dong, President of SH Corporation, Assemblyman Ahn Cheol-soo, and Assemblyman Bok Ki-wang, are posing for a commemorative photo.

On the 26th, a "Policy Forum on Sales Systems for Improving Housing Construction Quality" was held at the main conference room of the National Assembly Members' Office Building in Yeouido, Seoul, hosted by the Seoul Housing and Communities Corporation (SH Corporation), the International Convergence Management Association, and the Federation of Korean Economic Justice Practice, with the offices of Assemblymen Ahn Cheol-soo and Bok Ki-wang as organizers.

At the forum, the mandatory implementation of the post-sale system to address poor construction and improve housing quality was discussed. Post-sale refers to a sales method where occupants are recruited after more than 60% of construction has been completed following groundbreaking. Since 2021, after Mayor Oh Se-hoon announced measures to strengthen the post-sale system, SH Corporation has been recruiting occupants at the 90% construction progress stage.

Oh Jeong-seok, senior researcher at SH Urban Research Institute and a presenter, explained, "Post-sale can effectively protect housing consumers from unexpected incidents such as construction delays during the housing construction process," adding, "Compared to pre-sale, it can relatively induce improvements in safety and quality, so housing developers should be mandated to adopt post-sale."

Senior researcher Oh proposed implementing the system first with public developers and then expanding it to private developers. This involves adding a clause to Article 54 (Supply of Housing) of the Housing Act, stipulating that public housing developers recruit occupants after reaching 90% construction progress. Furthermore, to revitalize the post-sale system, he pointed out the need to supplement measures such as ▲expanding construction fund supply and diversifying financing methods ▲additional improvements to housing quality guarantee systems ▲and reforming illegal subcontracting structures in construction projects.

As a financing measure, senior researcher Oh suggested operating long-term low-interest loan programs to encourage private construction companies to expand post-sale adoption and extending financial repayment periods by considering deferred fund recovery timing. Additionally, considering that major defects occur in key structural parts, it is necessary to strengthen quality assurance measures for defects that consumers cannot detect.

Professor Kim Seon-ju of Kyonggi University analyzed the positive and negative effects of the post-sale system under the theme "Study on Improving Sales Systems for Housing Quality Enhancement." Houses built under the post-sale system have the advantage of detecting quality issues in advance and increasing transparency during construction. However, difficulties in initial financing can delay projects, and market volatility and demand forecasting challenges increase the financial burden on construction companies.

Professor Kim emphasized, "Academics and industry experts evaluate post-sale as an alternative that can increase transparency in the housing market, but it must be premised on effectively managing the economic risks of participants," adding, "The transition to post-sale should proceed gradually and selectively, considering market conditions, accompanied by institutional improvements and infrastructure development that maintain the advantages of pre-sale."

Professor Kim further explained, "It is necessary to support the system by implementing it step-by-step starting with public developers, certain regions, and specific types of housing, providing incentives to developers adopting post-sale, and revising standards for construction cost calculation."

Experts expressed the opinion that institutional improvements such as financial support are necessary to expand the introduction of the post-sale system to the private sector.

Song Doo-han, director of GH Urban Housing Research Institute and a discussant, explained, "For post-sale to become the new standard, a housing finance system suitable for post-sale must be established first," adding, "It is necessary to start with the public sector, improve financial systems, and gradually expand to the private sector."

Heo Ji-haeng, president of HUG Housing and Urban Finance Research Institute, explained, "Pre-sale and post-sale each have pros and cons, and housing suppliers and demanders can choose according to market conditions. However, if public housing developers choose post-sale to improve housing quality, stable financial procurement methods must also be considered."

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