Attention is paid to the government's efforts to improve systems such as the upper price limit system and the high sale price review system, which have been used as a means of controlling apartment prices.
We also prospectively review the easing of regulations on buildings such as officetels and urban living houses.
An official from the Ministry of Land, Infrastructure and Transport said today (10th), "The private sector is actively reviewing whether there are any housing and construction regulations that need to be rationally improved in accordance with the changes in the times and lifestyles and systems that the private sector has suggested as an obstacle to housing supply." said.
This follows from yesterday's Minister of Land, Infrastructure and Transport Noh Hyung-wook, who expressed his will to improve the system, saying he agrees with the private sector's demands for regulatory improvement at a meeting with supply organizations attended by representatives of private construction companies and associations.
It was observed that Minister Roh's remarks yesterday were not a ritual 'lip service', but it was confirmed that the working department actually started a detailed review to improve the system beyond this level.
Although the specific system improvement plan has not been refined yet, we are actively reviewing the system improvement required by the private sector to expand the housing supply.
In this regard, Minister Roh said yesterday, "I will look at the difficulties of the private industry with regard to the high sale price review system, the sale price ceiling system, and the housing business licensing system, and take a closer look at whether improvement is necessary." It is time for a prospective review.”
In particular, this is the first time that the Ministry of Land, Infrastructure and Transport has mentioned the possibility of easing regulations on presale prices, and attention is focused on whether it will appear as an actual policy change.
In order to stabilize the price of new condominiums, the sale price ceiling system is a system in which the sale price is calculated by adding the appropriate profit of the construction company to the housing land cost and construction cost when selling a house, and then the sale is made below that price.
The sale price is calculated within 80% of the surrounding market price.
There was a lot of dissatisfaction from the private sector because the cost of housing land was based on the appraised price and the cost of high-quality finishing materials was not properly reflected in the sale price.
The high sale price screening system implemented by the Housing and Urban Guarantee Corporation (HUG) also criticized that the screening criteria were arbitrary, and it was pointed out that this hindered the supply of housing.
In particular, as this system is being used as a key means of controlling apartment prices, it is observed that if the sale price regulation is lifted, the supply of reconstructed complexes in Seoul will also be breathable.
An official from the Ministry of Land, Infrastructure and Transport said, "In the case of the sale price ceiling system, there is a problem in predictability because items that are recognized as expenses and items that are not recognized are different for each local government, and the recognition rate is also inconsistent. said.
"In the past manufacturing era, factories and residential spaces had to be separated, but in the era of the 4th industrial revolution and untact era, a space that can meet various demands is needed as residential and work spaces are converged now," he said.The system related to officetels and city-style housing that can meet this demand is being rigidly operated, so we are reviewing the direction for improvement together,” he added.
The Ministry of Land, Infrastructure and Transport said it plans to additionally collect various opinions from the private sector and industry, and plans to finalize the system improvement plan after consultation with related ministries.
(Photo = Yonhap News)