In recent years, due to the continuous surge in housing prices, it has raised doubts about whether the government can achieve housing justice. In response to public opinion, the government has proposed a series of measures to curb speculation in the housing market. In January 2023, the government amended the Equalization of Land Rights Act and introduced Article 47-4, which prohibits the resale of pre-sold houses and newly constructed houses through contract assignment. Violators could face fines of up to three million NTD. And according to the article 47-4, the cancellation of pre-sold houses must be reported and registered within 30 days.
The rationale behind this amendment is to curb speculative activities in the pre-sold housing market and restore rational and fair transaction prices. However, the reactions to the new law have been mixed. Supporters argue that rampant speculation in the domestic real estate market has deviated from market trends and requires stricter legislation to curb the“speculation on pre-sold houses.”Opponents, on the other hand, believe that the transfer of pre-sold and newly completed houses should be allowed to return to market mechanisms, without excessive policy intervention. They also contend that measures already in place, such as the integration of property and land taxes and the high 45% tax rate on resale within two years, are sufficient to control the rise in housing prices. They advocate for the government to prioritize the use of tax and financial tools, rather than bypassing these options and resorting to the ultimate measure of prohibiting transactions, which would intrude upon private law autonomy.
Both the supporting and opposing arguments have their justifications. This paper will examine the constitutionality of Article 47-4 of the Equalization of Land Rights Act implemented in 2023, which pertains to the“prohibition of property sales contracts (pre-sold and newly constructed houses) being resold to third parties.”The examination will be conducted from a constitutional perspective, considering the protection of people’s property rights and the freedom of private law autonomy guaranteed by the Constitution. This analysis aims to provide insights for future legislative amendments.