Issue

[Issue] [January 2016] In Focus_Social Affairs : Survey by legal experts for residential stability

Survey by legal experts for residential stability

 

Yun Eun-Ju

Staff, Real Estate & National Projects Team

 

111 legal experts were surveyed about
price-ceilings for housing. 98 (88.3%) experts supported a price-cap system for
leased homes (jeonse or monthly
rentals), and 88 (79.3%) supported one for housing renewal contracts.

 

CCEJ conducted an online survey of
legal faculty and lawyers with regard to the government’s opposition to price
ceilings on rental housing and contract renewals. The government thinks prices
should be controlled by the market and that price ceilings inhibit property
rights and would cause rental prices to surge. In the survey, 88 of 111
respondents supported a ceiling on housing renewal contracts, and 98 supported
caps on jeonse, or monthly rentals. In addition to that, 107 (96.4%) said that
the government needs to intervene in the housing market in order to stabilize
the fluctuating residential prices and soaring jeonse prices.

Surprisingly, 110 (99.1%) said that
the issue cannot be more serious. Further, nearly half (49.5%) of the respondents
said that they were supportive of retroactive application on renewal of their
contract for rental houses in order to minimize the adverse effect of temporary
surging prices.

 

– How serious is the issue of stability in residential prices? (111 survey
respondents)















serious



110  (99.1%)



normal



1  (0.9%)  



not serious



0  (0%)


 

– Do you agree that the government should intervene in the residential
market for stability?

(111 survey respondents)











 I agree



107 (96.4%)



 I don’t agree



4  (3.6%)


 

When asked about the government
controlling the residential market, 88 said that the introduction of the
contract renewal claim is necessary (79.3%), but 22 were opposed to it (19.8%).
87.4% of the supportive people suggested the property right might be limited
with it, and 11.7% felt the opposite. When it comes to the price-cap system, 98
people agreed with it (88.3%), but 10 disagreed (9%).  There were other opinions on the question
such as: it is not effective, the government should provide the housing
subsidies and the tax should be imposed on the improper increasing of prices.

 

– If the government controls the residential market, what do you think
about introducing the contract renewal claim? Do you agree or disagree and why?

(111 survey respondents)























It limits property rights.  I disagree



21  (18.9%)



It limits
property rights.  I agree



76 (68.5%)



It doesn’t limit property rights. I agree



12 (10.8%)



It doesn’t limit property rights. I disagree.



1 (0.9%)



et cetera



1 (0.9%)


 

– If the government controls the residential market, what do you think
about introducing the price-cap system for ‘jeonse’ or monthly rental homes? Do
you agree or disagree and why?

(111 survey respondents)























It limits the property right.  I disagree



9 (8.1%)



It limits
the property right.  I agree



81 (73.0%)



It doesn’t limit the property right. I agree



17 (15.3%)



It doesn’t limit the property right. I disagree.



1 (0.9%)



et cetera



3 (2.7%)


 

The survey results indicate that the
price-cap system is essential for stable residential market conditions, despite
its limiting effect on property rights. In the National Assembly, a special committee
on housing welfare stopped the discussions about the two issues: lowering the
conversion rate for ‘jeonse’ to monthly rent, and establishing the conciliation
committee, following the passing of the dysfunctional Basic Act on Housing
Welfare. CCEJ calls for the committee to properly fulfill its duty and relieve
the soaring jeonse prices and stabilize the residential housing market.

 

Translator : Kim Young-Jin