New Real Estate Measures

A small-scale new town with 20,000 housing units is expected to take up national and public land comprising one million pyong in Geoyeo and Songpa-dong, and half of the units are mid- to large-sized apartments.

In the metropolitan area as a whole, an additional 50,000 units (21,000 mid- to large-sized units included) will be established in the national and public land, and another 140,000 units (60,000 mid- to large-sized units included) will be established in the expanded housing land development area.

Also, greenbelts (the development-restricted zone) comprising 2.6 million pyong will be lifted to become newly developed as an area for the national rental housing.

There will be large changes with the apartment subscription system which will be considering the household income and the number of children.

The government finalized its comprehensive measures on the real estate measure and reported it to Cheong Wa Dae on August 29. Details will be officially announced on August 31.

According to reform measures of the real estate system that Dong-A Ilbo obtained, the government has decided to change the two million pyong of national and public land adjacent to the Gangnam area, including Geoyeo and Songpa-gu, into housing sites for small-scale new town.

The government also plans to supply 10 million pyong with the existing metropolitan housing development sites, including Paju, Okjeong of Yangju city, and Segyo-dong and Gwol-dong of Osan, and an additional 140,000 units will be built there.

For housing stability, the government plans to supply 26,000 rental units in former greenbelts (the development-restricted zone) comprising 2.6 million pyong.

The apartment subscription system which allows the highest chance for those over 35 years old and have not owned a house for more than five years will be changed as well to consider more requirements, such as the household income and the number of family members.

The government has also finalized to impose those who own more than one house a 50 percent single tax rate to the marginal profit on transfer from 2007.

In the meantime, those who have owned only one house for more than 15 years will be eligible to receive a 45 percent deduction on the marginal profit on transfer, even though the house is worth more than 600 million won, which is the subject of the comprehensive real estate taxation.

According to the comprehensive real estate taxation, a tax will be imposed on housing units whose standard land price is over 600 million won and unoccupied grounds whose declared land price is over 300 million won from next year.