The Legislative Yuan amended the law today with five major measures to prevent real estate investors from reselling contracts and curb speculation. Spreading false information may result in a penalty of up to NT$50 million.
Amendments to the Equalization of Land Rights Act, which is regarded as the biggest black swan in 2023 for the real estate market, passed the third reading on the 10th in the Legislative Yuan. Everyone is asking if it can curb real estate speculation.
Chen Hou-hsun, Real Estate Negotiation Expert: “We still need to protect our economy. To protect or to curb it are sometimes in conflict. So basically I'm in favor of the amendments, which probably won't generate excessive fear for housing prices to fall.”
Taking a closer look at amendments to the Equalization of Land Rights Act, five major measures for housing development were implemented, including restricting resales of contracts. The purchaser is not allowed to transfer or resell a pre-build housing contract to a third party except to the spouse and other blood relatives. If you disseminate false information, you can be fined up to NT$50 million. A reward system for reporting will be established, along with a permission system for individuals and companies to purchase properties. In addition, the cancellation of pre-built houses must also be declared in advance.
Tseng Ming-chung, Legislative Whip (KMT): “The DPP is fully in power and must take full responsibility. The amendments' general direction helps to fight real estate speculation. So the KMT supports the third reading of this bill. ”
Ker Chien-ming, Legislative Whip (DPP): “How long will it take for me to get permission to rebuild my old house? We encourage everyone to rebuild their old, dangerous homes. Therefore, the policies do not oppose people. The permit will be granted in about a week.”
Legislators from both the ruling and opposition parties believe that the passage of the third reading will achieve the effect of cracking down on real estate speculation. Will this solve people's housing needs? Whether it will severely damage small and medium-sized construction companies and cause hidden economic worries still need to be closely observed.