2024-07-18 00:13:32
It is expected that private pre-sale winners will be able to make multiple applications for other complexes. However, the demand to maintain the winners’ status in the event that another developer develops the project after the project is cancelled has not been met, so further discussions are likely to be necessary.
According to the Ministry of Land, Infrastructure and Transport on the 18th, the Ministry is pushing forward with revising the ‘Rules on Housing Supply’ to allow multiple subscriptions by private pre-subscription winners. It is expected to enter the legislative notice stage soon and be implemented starting in September.
Currently, public pre-subscription winners such as those supplied by Korea Land and Housing Corporation (LH) or Seoul Housing and Urban Corporation (SH) can apply for other apartments, but private pre-subscription winners have limited opportunities. Among private pre-subscription complexes, there are 12,827 winners in 24 complexes who have not made the main application. If the law is revised, these people will be able to apply for other complexes as well.
A Ministry of Land, Infrastructure and Transport official said, “When the private pre-subscription system was introduced, we were concerned that if those who won the lottery dropped out in the middle, the profitability would decline, so we restricted subscriptions in other places, but now the situation has changed.” He added, “Cancellations are continuing in private pre-subscription complexes, so we decided to eliminate the restriction on duplicate subscriptions in the hopes of giving these people another option.”
Experts also gave a positive evaluation to the amendment that allows private pre-sale winners to apply for other complexes.
Ham Young-jin, head of the real estate research lab at Woori Bank, analyzed, “Currently, the fundamental selling price is rising due to inflation-induced increases in building material prices and construction costs,” and “In this situation, I think it is necessary to give a choice to those who missed out on other opportunity costs through private pre-sales.”
Lee Eun-hyung, a researcher at the Korea Construction Policy Research Institute, also commented, “This measure is viewed positively in terms of fairness with public pre-subscription winners.”
However, the Ministry of Land, Infrastructure and Transport showed reluctance to the request to allow private pre-sale winners in areas where projects were canceled for various reasons to maintain their status as winners when projects resume in the future.
A Ministry of Land, Infrastructure and Transport official said, “First of all, there is no precedent for maintaining the status of a winner when a cancellation or other event occurs in a private pre-sale,” and “we had already notified the public of changes such as project cancellation in the private pre-sale tenant recruitment notice.”
Ham Labjang said, “Even if another operator takes over the cancelled private pre-sale complex later, there will inevitably be differences in terms of balance, structure, etc.” and “For this reason, it may be difficult to maintain the previous winning bidder’s status.”
Research Fellow Lee Eun-hyung also said, “It is regrettable, but if we maintain the status of the pre-sale winners for the places that were canceled, it could also lead to unfairness with those who were preparing to subscribe in the future,” and explained, “Since there is insufficient evidence, the government will not be able to come up with a good solution.”
Reporter Kim Jeong-hyeon Photo News 1
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2024-07-18 00:13:32