This study reviews the attributes and processes of the installment sale system for housing in Korea, and provides conceptual methods to assess and improve housing pricing policies.
Installment housing sale system processes in Korea can be sorted into two categories: the rank system period and the bond bidding competition period. The rank system was used when only the national houses (small-sized or lower-priced houses established by the government to support low-income groups) were regulated, and the installment sale prices for all houses were controlled. During this time, housing price controls and the supply regulation policy based on the housing scale was concurrently implemented and the framework for Korean housing policy was developed. The bond bidding system was implemented to absorb the premium generated by price control to utilize in building national housing for those who do not own houses , and to reduce speculation by reducing resale profits.
Currently, there are many subscribers to subscription saving and deposit in Korea, and the number of subscribers in each house size groups and the supply of construction is unbalanced. This is a restrictive factor in the reorganization of the installment sale system. Therefore, autonomic house prices should be implemented in phases. Despite the unavoidability of the actualization of housing prices, improvement measures to guarantee a minimum level of rights and interests of the house owners should be developed.
In conclusion, the measures to improve the improvement system for housing are as follows: First, complete price liberation and size of houses related cross-subsidies is required. In other words, the houses not exceeding 18 pyeong (59.4 square meters) would be classified as national houses, and houses exceeding certain sizes are sold by the housing bond. Second, the prices for the houses exceeding 18 pyeong should be liberalized, and the prices for houses not exceeding 18 pyeong should be regulated. And the rates for the supplied houses by each size should be publically announced by the government. In this way, the unfairness resulting from buying different housing bonds can be reduced. Third, the pre-determined installment sales price system, which is currently implemented, should be maintained, and a certain proportion of differences between the pre-determined price and the actual price should be purchased by the construction contractors. These measures will help greatly in improving the installment sales system when it is implemented with permissions to take over housing bonds of small-sized contractors, giving priorities for long-term renters, and prohibiting overlapped provision of national houses.
주택분양제도 및 가격정책의 개선방향(Direction of improvement of installment sale system and pricing policies for houses)
|Series Title; No||정책연구시리즈 / 92-19|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Territorial Development < General|
|Holding||KDI; KDI School|