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Regulations for Home Purchase to Be Revised

Posted May. 16, 2007 07:52,   


Families without homes who are supporting parents aged 60 or older will be denied opportunities to buy a house if their parents own two or more themselves. Singles over 30 years old can get additional points in applying for home purchases only after they live with their parents for more than a year.

The Ministry of Construction and Transportation yesterday announced the bill of “revised regulations for home supply” to be legislated today, which states detailed implementation plans of the so-called home buying point system.

Under the system, priority goes to those scoring the highest points in criteria such as how long they lived without a home, how many family members they support, and how long they have deposited money in their housing savings account. The revision will be confirmed in July after building public consensus and implemented in September.

According to the amendment bill, the point system will determine 75 percent of candidates with housing savings or installment payment account, who apply to buy private housing of 25.7 pyeong or smaller (one pyeong equals 3.3 square meters). The rest will be chosen by a lottery.

When it comes to public housing of the same residential space, the current ranking system will continue to be adopted.

For houses that are 25.7 pyeong or larger, both private and public housing will be first distributed via a bond bidding system, and the highest bidder takes the home. If applicants offer the same bids, half of them will each be chosen by both the point system and a lottery.

The expected bond price ceiling will be lowered to 80 percent from 90 percent of the current market prices in order to bring down substantial housing costs.

In addition, a home owner, even if the person is given priority in terms of housing savings, will not score highly in the point system, hence giving him/her a slim chance to buy another house.

Those with more than two houses will be deducted 10 points, as every house is a reduction of five points. For those staying together with their parents or grandparents, five points will be deducted from a second house, in case family members have two or more houses.

The current Internet application for home purchase will also be expanded nationwide, and opportunities for the disabled and National Merit Award recipients to buy special housing will be limited to only one time.

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