yes, it does. the old plot will be vacated.
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Sorry but house buying this game always confuses me. Do you at least get money back for the old land. If you don't, you could always just let it get demolished and get at least 80% back.
SN: don't you have to buy the house again after you buy the land?
So far its only been confirmed for Free Companies, with private housing still unknown and to be honest is of little use, because you will be giving up your original plot, thus loosing your investment. The only way your going to get any Gil back is, sell your plot to another player or wait 45 days without entering your house to get 80% of the purchased price back.
This is setup for FCs to move and keep chambers, workshop and Airship voyage status, possibly not actually moving the airship/s them selves as they don't say it... you might have to remove them prior to moving, its not clear yet.
I just wish we could have whatever house we want in whatever area. I do get the idea of all houses looking similar cause it looks nicer, but at the same time there's nothing wrong with having a Lavender Hills house in the Mists. How is it any different than the chocobo or piassa houses? I keep hoping someday they will let us have whatever type of house we want in whatever ward we want.