Government Postpones Owner-Occupancy Rule for Homebuyers Until May 2028

The government announced on the 12th that it will postpone the mandatory residency requirement for new owners who purchase a home with a tenant by the end of this year, provided they move in by May 2028. This measure is intended to alleviate the burden on people looking to buy homes.

When purchasing a property subject to land transaction permits, the obligation to register residency will not apply to future mortgage executions. The government expects this measure to encourage the release of properties onto the market.

Some interpret this as a relaxation of the owner-occupancy principle under the land transaction permit system and question whether it permits 'gap investment' (purchasing a property with a tenant). The Ministry of Land, Infrastructure and Transport emphasized that the owner-occupancy requirement is being postponed, not eliminated, and that it does not newly permit gap investment. The Minister of Land, Infrastructure and Transport stated that the measures are being implemented while maintaining the principle of prohibiting gap investment.

The final move-in deadline is May 11, 2028, and the application deadline for the permit is December 31 of this year. Ownership transfer registration must be completed within four months of receiving the permit. Failure to comply may result in an enforcement penalty of up to 10% of the acquisition price, and in cases of intentional false or fraudulent transactions, the permit can be revoked and the transaction nullified.