DP Policy Chief Kwon Chil-seong Calls for Extension of Actual Residency Obligation Waiver in Land Trade Permission Zones Through Next Year

▲ DP Policy Committee Chairperson Kwon Chil-seong speaking on real estate policy

The Democratic Party has proposed that the government extend the actual residency obligation for home buyers in land trade permission zones by an additional year.

During a floor strategy meeting held at the National Assembly today (September 15), Policy Committee Chairperson Kwon Chil-seong stated, "To alleviate housing instability for tenants and stabilize the jeonse and monthly rent markets, we need to consider extending the current actual residency waiver through next year and allowing the renewal of lease contracts."

Under the October 15 measures introduced last year, individuals who acquire housing within land trade permission zones are required to move in within four months and physically reside there for two years.

However, to prevent a freezing effect in the housing market where listings dry up, the government allowed home buyers without a home to purchase houses with existing tenants and deferred the actual residency obligation until the end of the existing lease term, applying through the end of this year.

Despite this measure, concerns have been raised that tenants' rights to renew leases might not be recognized, and ongoing instability in the jeonse and monthly rent markets has fueled calls for additional complementary measures.

Explaining the necessity for the extension, Policy Chairperson Kwon noted, "The current expansion of the waiver on actual residency obligations in land trade permission zones is only available for applications until the end of this year, making it impossible to apply for those wishing to sell their homes next year in accordance with tax law revisions."

He also added, "Because only the remaining lease period is recognized while lease renewal contracts are not, it affects the housing stability of tenants."

(Photo: Yonhap News)

※