‘Movable Real Estate Agencies’ Spread All Over the Nation

In front of the apartment model house, ‘Prugio’ at Yaksa-dong, Jung-gu in Ulsan

The sale price for this apartment is 4,900,000 won (for 33 Pyong)-5,650,000 won (for 46 Pyong), which is twice the figure of the current apartment price. But the applicants with the future ownership right of this apartment are in rows.

Around the model house, what is called the ‘movable real estate agencies without license,’ about 50 parasols were installed to allure applicants with future ownership rights, saying, “Sell the future ownership right to us, and we will pay the difference in cash.”

While the journalist was saying, “I’d like to sell the future ownership right..., “ 10 real estate agencies swarmed to the journalist and demanded him to sell the future ownership right to them. At first, they tried to pay the difference in cash of 5 million won, but in the twinkling of an eye the price was up from 500,000 won to 1,000,000 won via an auction.

One real estate agency in this territory said, “These movable real estate agencies, mainly from Seoul or Chungcheong Province, work on a national scale.”

A broker from Seoul said, “I plan to make a big profit in Ulsan and once again do that in Busan which is not designated a speculation zone yet.”

Movable real estate agencies take the lead at the actual spot of apartments for installment sale in the nation’s big cities. These agencies raise the price for apartments newly distributed and receive the marginal profit. After getting it, they disappear. Therefore, actual consumers are harmed.

Last month, 25 Distribution of “Lotte Whasung Castle Gold Park” showed an average competitive rate of 51.2 vs. 1(the highest competitive rate 124 vs. 1 in 33 Pyong).

32 Pyong apartment, sold for 210-220 million won, was paid the 30-50 million won difference. In the real estate market, about 20 percent of applicants are controlled by the movable real estate agencies, so those from Seoul or other cities are distributed by changing their address.

On October 1, the day before the government designated SuSeunggu as a speculation zone, the approval applications to sell the future ownership right increased to 300 cases, compared to the usual 1-3 cases per day.

There is criticism that the government rushes around fruitlessly after the event against movable real estate agencies.

Professor Lim Jae-man, public administration department at Daegu University said, ” The government assorted speculation zones so this finally stimulated ‘nationwide speculation’. Taxation policy based on restriction of trading apartment ownership and the real price of property size should become effective all over the country.”