Aged 40 or Older Without a House Will Have Priority in Purchasing Homes

Starting from next year, it will be easier for “those aged 40 or older and have not owned a home for more than 10 years” to purchase an apartment which is subject to the price ceiling system (cost linkage system) and of which actual area is less than 25.7 pyong.

In addition, people who want to purchase those apartments subject to the cost linkage system will be stripped of the priority among application candidates if they owned an apartment in a home ownership draw over the past 10 years from the time they applied for the apartment.

The new system is expected to bring about a big change in the home application market, as it includes Pangyo New City in Sungnam, Gyeonggi province, Gimpo New City in Gyeonggi Province and Paju New City.

The Ministry of Construction and Transportation said on December 29 that it will make into law the revision of the enforcement ordinance and enforcement regulations on housing law and that the law will take effect March next year.

The revision stipulates that 75 percent of apartments subject to cost linkage system shall be provided to householders who do not own a house and that 40 percent among the 75 percent shall be supplied to “householders who are aged 40 or older and have not owned a house for more than 10 years” first and foremost. The other 35 percent out of the 75 percent will go to householders who are aged 35 or older and have not owned a house for more than five years.”

The revision also prohibits the sale of home ownership of apartments subject to the cost linkage system for five years after the purchase contract in much of the Seoul metropolitan area that is running a high potential for overheated application and for three years in other areas.

Kwang-Hyun Kim kkh@donga.com