Gov’t to Restrict Property Right Transactions for Coveted Homes Under Construction

In a bid to curtail overheated real estate speculation, the government announced a virtual sales ban of property rights to housing complexes under construction in some areas.

In a meeting presided over by Finance Minister Yoo Il-ho, the government decided to extend the sales restriction of property rights for homes being built in a number of districts in Seoul including in affluent Gangnam and other key areas, from the current six months to the registration of ownership transfer, which usually takes place immediately prior to moving in.

The measure comes after the government assessed that the skyrocketing competition to subscribe for new apartments in the areas is due to speculative funds vying for short-term profits through selling rights to move in.

The restriction period for transferring apartment purchasing rights will be extended to one year and six months in districts excluding the Gangnam area in Seoul as well as the city of Seongnam in Gyeonggi Province.

Source: KBS World Radio