Apartment Sales System In Metropolitan Area Changed

By the first half of this year at the earliest, the apartment sales system is likely to change from a simultaneous sales system to flexible one in which suppliers can control their sales times. It is the first system change in 13 years since a simultaneous sales system was adopted in 1992. However, the simultaneous sales plan slated for the new city of Pangyo in Sungnam City, Gyeonggi Province will take place as planned in November this year.

Presided over by Prime Minister Lee Hae-chan, the government held a ministerial meeting on regulation reform on March 31, confirming an easing of housing-related regulations.

The simultaneous apartment sales system that central and local governments currently use will be changed to a frequent sales system in case suppliers request it. Instead, the government has decided to consider establishing an internet website to comprehensively manage apartment sales information.

In addition, in order to reduce the space designated for shops for each residential and commercial complex building, currently set at 10 to 30 percent, current regulations were amended so that several buildings are recognized as a single building if they are connected with underground passageways, meaning less space will be taken up by shops.

Meanwhile, the government has decided that if the exclusive space of an apartment is less than 25.7 pyong (or 85 square meters) after being remodeled, acquisition and registration taxes for the increased space will be exempted. In addition, the interest rate for the apartment purchase less than 25.7 pyong will be reduced from 5.5 percent to five percent.

Sang-Rok Lee myzodan@donga.com