How did the pre-sale housing system in Taiwan come about?

In the past two days, some people have been talking about pre-sale houses. The current pre-sale house problems and mitigation plans should be discussed in the future on the "Regulation on Average Land Titles" stuck in the Legislative Yuan. But many people wonder why there are pre-sale houses, but we can tell a little historical story.

Until at least 1975, the government was very passive about housing policy. There are many reasons for the negative, including but not limited to wanting to counter-attack the mainland, focusing on industrial development and focusing on foreign trade and actively joining the division of labor system in the world market, etc. At that time, the general idea of the government was "to increase the national income, and everyone will have no problem buying a house if they make money." Therefore, instead of pursuing a housing policy, it is better to work hard on the economy.

However, in the early 1970s, due to the oil crisis and the economic downturn, this model became less feasible, and the number of houses was not enough. In 1979, the Economic and Construction Association believed that 90,000 new households should be built every year to accommodate the new population. If the living environment is to be improved As for old houses and illegal reconstructions, there were almost 150,000 households, but at that time the number of households added each year was less than 90,000.

In addition, private builders (such as Cathay Pacific) have appeared in Taiwan since the 1960s. They provided a large amount of housing supply (accounting for about 95.7% of the overall housing market by 1980), but their prices were also relatively expensive, and a large number of urban and rural areas flooded into the city. Immigrants with low and middle incomes simply cannot afford to buy a house, while the middle class in the city is frantically buying houses to preserve their value.

In fact, the country at that time both needed builders, but they were not very supportive of builders. The reason for the need is of course that the builders need to provide housing supply, but the loans and other funds needed by the builders are in competition with the processing and export industry at that time. Therefore, the financing conditions for construction at that time were exactly the same as the financing conditions of general companies.

At this time, the "pre-sale house" system will shine! The government does not provide preferential financing, and the public cannot afford to buy a house, then I will use the concept of fundraising to make the repayment conditions easier for everyone, and it can also avoid related taxes such as deed tax in the name of "consumer commissioned construction"; For the builder, he can obtain construction funds in advance, and can also provide "consumer-friendly" design changes to reserve space for future additions, illegal constructions or iron windows.

So what should the government do? Their idea was "I will also build a house, and I will fight with your builders." In 1976, they formulated the "Six-Year State Housing Plan", which is expected to build 106,931 cheap houses and sell them to the public within six years. While increasing the supply on the one hand, the other hand is suppressing private builders, such as the 1973 limit on the price of building materials, the 1974 limit on construction above the fifth floor, the 1979 investigation of house purchase funds, and the 1980 deadline for the use of vacant land for construction, etc.

But in the end, due to various complicated reasons, in short, the government lost the construction of houses to the builders, and it will not be carried out here. In 1986, the government promulgated the "Administrative Measures for Construction Manager Companies". The construction manager company needs to have a bank to participate in the investment of more than 30% (but if the bank wants to invest, it must be approved by the Ministry of Finance). The construction manager company can review the construction plan, project progress and construction management. , Acting on behalf of the performance guarantee procedures.

The "Administrative Measures for Construction Manager Companies" can be seen as the government's surrender on the state housing policy (if I can't win you, I can always build a platform), but it can also be seen as the first place where the pre-sale housing market is officially managed. step. It is roughly like the early years of online shopping when there was no intermediate platform, and fraud was frequent. Later, when a platform was established, it would be better.

Subsequently, the "Administrative Measures for Construction Manager Companies" became invalid in 2003 after the amendment of Article 174-1 of the Administrative Procedure Law. Originally, some members proposed to legalize the "Administrative Measures for Construction Manager Companies" into the "Construction Manager Industry Management Regulations".

However, some officials and legislators objected at that time, believing that the construction industry was "too hard" at that time, and now "pre-sale cases are very rare."

I have pasted the draft and discussion of the "Construction Management Industry Regulations" proposed by members at the time below, and those who are interested can also take a look.

Construction Management Industry Regulation Bill

https://reurl.cc/M096qK

Verbatim of the review process

https://reurl.cc/d291RD