Real Residence Requirement Grace Period Extended to 2027 in Land Transaction Permit Areas…Burden Falls on Tenants and Buyers

Following a system improvement by the Ministry of Land, Infrastructure and Transport, Suwon City is extending the application deadline for "real residence requirement grace periods" for housing occupied by tenants within land transaction permit areas by one year until December 31, 2027, and is further expanding the scope of approved exemptions.

Individuals who purchase houses in land transaction permit areas must reside there for two years after moving in. The real residence requirement grace period is a system that defers the start of the residence obligation when tenants are currently occupying the property, making it difficult for the buyer to move in immediately.

Applicants must be non-homeowners who have maintained that status continuously since May 12, 2026, and have purchased a house where a tenant is currently residing. After the grace period ends and the buyer moves in, they must actually reside there for two years.

The scope of approved exemptions is also expanding. Previously, only the remaining period of the existing lease was recognized as a real residence grace period; however, beginning now, when a lease is renewed once, an additional grace period of up to two years can be granted. Purchased rental apartments within regulated areas can apply for real residence grace periods for up to 15 months from the point when the mandatory lease term ends or the date of relocation notice occurs, at which point tax incentives are applied.

The related amendment to the enforcement ordinance of the "Real Estate Transaction Reporting Act" was publicly announced for legislation on September 18 and is scheduled to take effect on October 1.

An official from Suwon City stated, "We hope that this measure will help protect the residential stability of tenants while reducing inconvenience for non-homeowner actual demand buyers seeking to purchase houses. We will thoroughly manage whether real residence requirements are met after permission is granted to block speculative transactions."