
Real Estate Development: Proposed terms of housing ownership
Real Estate Development: Proposed terms of housing ownership
The Ministry of Construction has recently submitted the draft for the amended Housing Law, which if passed in the next discussion might become effective in March 2027. A key proposal introduces fixed-term ownership of apartments. The draft's central change is introducing fixed-term apartment ownership (Section 4, Articles 28-29), explicitly stating that ownership terminates when a building's service life ends or when it must be demolished. However, it remains unclear whether the provision would apply to existing projects or only to new ones. In the market, this proposal has created a negative sentiment toward the sector, leading to weak performance. Many good developers are trading near book value, providing an attractive upside. Developers focusing on real demand should be less impacted in our view.