The ‘actual residence obligation’, which is destined to be abolished, is only ‘active’ for prospective residents of Dunchon Jugong

The so-called Land, Infrastructure and Transport Committee meeting was canceled due to opposition from the Democratic Party
The end of the 21st National Assembly session is just around the corner, but the housing law amendment bill has been blown away
The Dunchon Jugong move-in period has been pushed back to November, and the fallout is likely to be severe due to the actual residence requirement

‘Dunchon Jugong (Olympic Park Foreon) Apartment’ in Gangdong-gu, Seoul, which is considered the largest reconstruction project since Dangun, is expected to be the biggest variable in the real estate market in the second half of this year. This is because the abolition of the ‘actual residence obligation’, which had been firmly promised by the government, was scrapped without being able to pass the plenary session of the National Assembly, making confusion before and after moving in inevitable.

‘Housing Act Amendment Bill to Abolish Actual Transaction Obligation, ‘Frustrated’ on the threshold of the National Assembly plenary session

According to the political circles on the 9th, the meeting of the National Assembly’s Land, Infrastructure and Transport Committee Bill Review Subcommittee scheduled for this morning was finally canceled. Originally, the National Land, Infrastructure and Transport Committee of the National Assembly held a subcommittee to review the National Land Bill in December last year and discussed amendments to the Housing Act related to the abolition of the actual residence requirement. However, when a proper conclusion could not be reached, the agenda was put on hold and decided to be discussed again at the subcommittee meeting in January, but due to conflict between the ruling and opposition parties, the meeting itself was canceled.

In response to this, an official from the ruling party’s Land, Infrastructure and Transport Committee said, “We could not hold a subcommittee meeting because the Democratic Party’s position was not resolved. If the Democratic Party’s position is resolved, we will open a subcommittee meeting at any time and pass (the housing law amendment).” It is true that the possibility of additional discussions is open as the ruling and opposition parties decided to hold an extraordinary session of the National Assembly in January from the 15th to the 8th of next month. On the other hand, political officials are skeptical. A political figure said, “In fact, there is a high possibility that the housing law amendment will be scrapped.” He added, “A general election will be held immediately after the 1st National Assembly concludes its session in May. “There is no time to discuss the bill,” he predicted.

It’s not easy to pay the balance or move in, the nightmare of a Dunchon resident

Meanwhile, the spark of the failure of the housing law amendment fell on prospective tenants of apartments subject to a sales price cap in the metropolitan area who had placed their hopes on the abolition of the actual residence requirement. In particular, it is rumored that the 1 households scheduled to move into the Dunchon Jugong Apartments are in dire straits as their move-in date has been pushed back from early next year to November this year. 

In order to block short-term real estate speculation, the complex is subject to an obligation to live in the complex for five years after moving in. If you pay the balance or sell the lease before the end of your period of actual residence, you will be subject to up to one year in prison or a fine of up to 5 million won. Due to this risk, Dunchon Jugong Apartments suffered a large-scale unsold housing situation until the end of 1.

However, when the government announced the ‘1 Unsold Sales Measures’ in January last year and mentioned the abolition of the actual residence requirement, all of the general sales volume of Dunchon Jugong was filled. The problem is that a resolution from the National Assembly is required to abolish the actual residence requirement. At the time, political officials pointed out that the opposition party would not readily agree to the 1.3st National Assembly in a situation where the ruling and opposition parties were divided, but the government was confident of abolishing it. The cost of overlooking this has now, a year later, come back as a ‘burden’ to the government and to the prospective residents who firmly believed in the government’s words.

Now, prospective residents of Dunchon Jugong Apartments are in an urgent need to raise the balance amounting to hundreds of millions of won. For example, if the average price of an 84㎡ general sale for Dunchon Jugong is 12 billion won, the down payment is 1 million won, the interim loan is 7 million won, and the balance is 4 million won. At this time, if you rent out the lease, you can pay the balance of 4 million won as a deposit and partially cover the intermediate payment, but this method is completely blocked. In the end, for those who are burdened with raising the balance, the only options left are to move in within 3 to 4 months from the initial move-in date or to apply for purchase from LH. Although there is a grace period called ‘movement preparation period’, in accordance with Article 60 2 of the Enforcement Decree of the Housing Act, if a preparation period is required to move into a specific house, the period of residence in the house is ‘up to 90 days from the date of first possible occupancy’. Because.