The residency exemption for purchasing rental housing in land transaction permit areas has been extended until the end of 2027. The exemption now includes not only the remaining period of current rental contracts but also renewal contracts.
The Ministry of Land, Infrastructure and Transport announced on September 17 that the application deadline for the residency exemption, initially set for December 31, 2026, will be extended to December 31, 2027. This measure aims to facilitate transactions for homes where tenants are currently residing, making it difficult for buyers to move in immediately. However, the requirements for homebuyers to be first-time buyers and to reside in the property for two years after moving in will remain unchanged.
The Ministry plans to announce a revision to the relevant real estate transaction reporting law on September 18, with implementation set for October 1. This will apply to all homes that are rented or have lease rights established as of the implementation date.
The key changes include the extension of the residency exemption application period and the expansion of its scope. The application period for the residency exemption will now last until December 31, 2027. The extended exemption can be applied for starting October 1, 2026. The requirement to acquire the property within four months of receiving approval remains the same as the measures announced in May.
For rental apartments in adjustment target areas, if the mandatory rental period is still in effect or if the transfer of membership status is restricted due to reconstruction or redevelopment in speculative overheating zones, the application period for the residency exemption will be adjusted accordingly.
The scope of the residency exemption has also been broadened. Under the previous May measures, the exemption only applied to the remaining period of rental contracts at the time of implementation. Now, one renewal contract, for a maximum of two additional years, will also be recognized.
If there is no renewal contract, the residency exemption will apply until the end of the initial rental contract as of the implementation date, allowing for a maximum move-in period until September 30, 2028. If there is a renewal contract, the exemption will extend until the end of the renewal contract period, provided that the renewal contract is signed before applying for the residency exemption and starts between October 1, 2026, and December 31, 2027.
This measure allows for a maximum move-in exemption of up to three years and three months. The Ministry has stated that buyers must move in by 2029 at the latest.
The requirements for buyers remain the same. Buyers must have maintained their status as first-time homebuyers since May 12, 2026, and must reside in the property for two years after moving in.
While maintaining the principle of residency requirements, this measure aims to alleviate the disruption in transactions for homes currently occupied by tenants, balancing the circulation of listings in land transaction permit areas with tenant housing stability.
Kim I-tak, the First Vice Minister of Land, Infrastructure and Transport, stated, “This measure preserves the principle of residency under the land transaction permit system while addressing the practical difficulties in the transaction process for rented homes and enhancing tenant housing stability. We will ensure that the requirements for first-time homebuyers and the two-year residency obligation remain in place to facilitate transactions centered on genuine demand while thoroughly blocking speculative demand.”
* This article has been translated by AI.
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