Restriction of the Subscription Priority from the End of This Month

The families which used to be authorized to buy an apartment for the latest 5 years, cannot acquire a qualification of application priority for 5 years in an excessive speculation area from the end of this month.

Even tough one family who has 2 houses acquires the priority qualification by having the subscription passbook, it cannot be the first order of the subscription, but the second order in the excessive speculation area if not sells the house.

The Ministry of Construction and Transportation (MOCT) announced on October 22, “The legislative notice of a revised bill of ‘Rule on Housing Supply’ prescribing the above matters was completed. Accordingly, we will enforce straight away as soon as an inspection of Regulatory Reform Committee (RRC) and The Ministry of Legislation(MOLEG) is finished. A restriction of subscription qualification is a part of the measures on housing market stability announced by the government on September 4.

According to the new revised bill, the persons who were authorized to buy the apartment anywhere in the country for the latest 5 years, are not subject to the first order of subscription in all areas of Seoul, Goyang, Namyangju, Hwaseong-si of Gyeonggi-do, and Incheon Samsan Site Development Zone 1.

For example, if people were authorized to buy the apartment in December, 1998, they cannot be the first order until the end of next year.

In early months of next month, the new subscription base will be applied to the 10th Seoul Apartment Sale.

After the revised rule is enforced, as of a public notice date of dweller collection, families which have over 2 houses, will be nudged out of first place in areas.

Those who are not householders will be excluded from the qualification of first order in spite of having the subscription passbook after September 5.

However, if these areas are released from the excessive speculation zones, they will be restored to first order.

Besides, if one area is designated as the excessive speculation zone, they are not subject to first order in the area.

Ki-Jeong Ko koh@donga.com