Effects of Fixed-Term Building Lease System and Directions for Further Revision

Abstract

The paper examines some reported effects of the new fixed-term building lease system which was enacted March of 2000, and shows that its effects on housing rent and size of the supplied units were quite significant, even though the data were taken for only six months immediately after the enactment of the law.
The paper also points the directions that the forthcoming revaluation and revision of the law should aim to;(1) allow switching from the old unlimited-term lease to the fixed-term lease, (2) strengthen the freedom of having more flexible contract agreements, (3) simplify the documentations and procedures of fixed-term contract, (4) allow market determined fee for real estate agents' services, (5) permit landlord's monetary purchase of tenancy rights, (6) state in clear language the requirements of legitimate causes needed to evacuate tenants under the new unlimited-term housing lease contracts.