South Korea extends residence deferral for land transaction permit areas

land transaction permit areas actual residence deferral real estate policy lease renewal housing market

The South Korean Ministry of Land, Infrastructure and Transport has announced an extension of the actual residence deferral measure for properties within land transaction permit areas. The application deadline for this deferral has been extended from the end of 2026 to December 31, 2027.

Under the new rules, the scope of the deferral has been expanded to include lease renewal periods. If a tenant exercises their right to renew a contract, the buyer can defer move-in for one renewal period of up to two years. This allows certain non-homeowner buyers to delay their actual move-in for a maximum of 3 years and 3 months.

To prevent speculative investment, strict requirements remain: buyers must maintain non-homeowner status and must reside in the property for at least two years once they move in. The revised regulations are set to take effect on October 1.

Despite these measures, market data shows limited impact. In August, only 4.5% of new land transaction permit applications in Seoul requested residence deferrals. Experts note that high loan dependency and financing difficulties for non-homeowners continue to make properties with existing tenants less attractive, as buyers often prefer vacant homes to avoid complex coordination and funding hurdles.

Entities

Gangnam · Ministry of Land, Infrastructure and Transport · Seoul · Yongsan

Claims

What the coverage asserts, and how many sources carry each claim.

[● 3 SOURCES] The application deadline for the actual residence deferral measure in land transaction permit areas has been extended to December 31, 2027. www.imaeil.com · www.kyeonggi.com
[● 3 SOURCES] The deferral period now includes one lease renewal contract for a maximum of two years. www.imaeil.com · www.kyeonggi.com
[● 3 SOURCES] The revised Enforcement Decree of the Act on Report on Real Estate Transactions is scheduled to take effect on October 1. www.imaeil.com · www.kyeonggi.com
[● 3 SOURCES] Buyers can delay actual move-in for up to 3 years and 3 months under certain conditions. www.imaeil.com · www.kyeonggi.com
[● 3 SOURCES] Buyers must maintain non-homeowner status and fulfill a 2-year mandatory residence requirement after moving in. www.imaeil.com · www.kyeonggi.com