Government Strongly Regulates Housing Reconstruction
Due to the announcement of Roh administration’s strong comprehensive regulation on apartment reconstruction, the responses of real estate markets soar. However, it doesn’t seem that the market of apartment reconstruction hasn’t showed any significant responses such as increase of sales and decrease of housing prices.
Yet, in the event the regulation on apartment reconstruction is executed, it is possible to expect that the apartments in process of being reconstructed will face difficulties to go forward. According to a source in the Busan real estate market, the direct responses from the market haven’t risen despite the announcement regarding reconstruction policies, for it was announced lately and the real estate market hasn’t recognized any specific provisions. More importantly, the Seoul government hasn’t finalized its final details yet.
In addition, it is known that some over 20-year-old apartment complexes haven’t been influenced by the announcement yet, for their reconstruction has already been in process prior to the announcement. However, it is worrying that other apartments that are planned to initiate their reconstruction or in the beginning stage to be reconstructed, can be directly influenced by the new reconstruction policy.
In particular, as it is true that 20-year-old apartment complexes that could be legally possible to be reconstructed have led the cost of apartment reconstruction markets; those apartment complexes rather than other complexes will be significantly influenced, depending on the government’s new real estate policy.
Kim Sung Woo, team manager of Real Estate 114, said, “Now we’re observing the prospects of the Busan reconstruction market, and once the regulation is executed, the reconstruction apartment complexes, which actually led the cost fluctuation of reconstruction market, will face a cost downfall of their apartments,” adding “It is also expected that the overall cost of apartment complexes will be down and stable.”
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 / 입력시간: 2006. 02.07. 09:27
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