In May, 19,392 Households Move In... Gyeonggi-do Records Highest Move-in Volume This Year

The number of apartments scheduled for move-in next month in Gyeonggi Province is expected to be the highest this year. Nationwide, a total of 19,392 households are set to move in, which is about 5% less than in April and approximately 32% less compared to the same month last year.

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According to Zigbang on the 24th, the total number of move-ins in May was surveyed to be 19,392 households. This is about 5% less than the previous month (18,425 households) and about 32% less than the same month last year (28,617 households).

By region, the metropolitan area accounts for 10,866 households, and the provinces have 8,526 households, with the metropolitan area having a higher proportion. In the metropolitan area, Gyeonggi has 10,524 households scheduled for move-in, the highest volume this year. Incheon has 342 households preparing for move-in.

Move-ins are expected to proceed in seven regions. Gyeonggi has the most, followed by Ulsan, Daegu, and Chungnam. In particular, Ulsan is supplying 2,840 households, which is the largest volume since September 2017.

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Despite the easing of resale restrictions earlier this month, transactions of pre-sale rights have not increased. Although resale has become possible, follow-up measures such as the abolition of the mandatory residence requirement have not been implemented.

For pre-sale rights, if held for less than one year from the contract date, capital gains tax must be paid at a rate of 70% of the market price difference; in other cases, the tax rate is 60%. Accordingly, the government plans to amend related laws to reduce the short-term capital gains tax rate to 45% for holdings under one year and to abolish capital gains tax for holdings over one year.

Also, the fact that the amendment to the Housing Act related to the abolition of the mandatory residence requirement has not yet passed is another reason why the effect of easing resale restrictions is limited. Since February 2021, those who won apartments subject to the pre-sale price ceiling system must reside for 2 to 5 years from the initial move-in date.

Ham Young-jin, head of Zigbang Big Data Lab, said, "In some complexes where the pre-sale price ceiling system applies, such as public and private housing sites, there is a mandatory residence obligation of 2 to 5 years. Even if resale restrictions have been lifted, sellers must re-lease the property after the transaction to fulfill the residence requirement." He added, "The review of the amendment to the Housing Act related to the abolition of the residence obligation is scheduled for the 26th of this month, and whether the amendment passes is expected to have a significant impact on the pre-sale rights transaction market."

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