Input 2021.04.21 15:32 | Revision 2021.04.21 16:34
“Permitted zone designation and housing supply procedures are irrelevant”… ‘Pre-blocking’ anxiety factors from before supply
The city of Seoul announced on the 21st that it will designate four major large-scale reconstruction and redevelopment project areas as land transaction permission areas.
If designated as a land transaction permission zone, you must obtain permission from the mayor of the relevant ward when trading houses, shopping malls, and land over a certain size. If a land transaction contract is concluded without permission, imprisonment for up to two years or a fine not exceeding 30% of the land price. Residential land is prohibited from being rented for two years, so-called’gap investment’. This means that you can only buy a house where you will live.
Complexes within the four reconstruction/redevelopment promotion zones in the region are included in the land transaction permit regardless of the project stage, including the promotion committee stage prior to the establishment of the association. However, to minimize regulatory damage, commercial areas were excluded from the Mok-dong district.
The city also decided to apply more strongly by lowering the area of land that requires permission to 10% of the standard area (residential area 180㎡, commercial area 200㎡) (residence area 18㎡, commercial area exceeding 20㎡). did. It is to maximize the purpose of the system of’containment of speculation’.
Seoul City Planning Bureau Director Lee Jeong-hwa said, “The designation of a permit zone is not directly related to the housing supply procedure,” he said. “The supply-related procedure will be carried out step by step regardless of the zone designation.” Although the designation of the land transaction permission zone is a measure to support Mayor Oh’s policy to expand housing supply, there is a high concern that speculative demand will inflow, as abnormal transactions have been detected in some reconstruction complexes and redevelopment areas along the Han River, and sales are exhausted and bid prices surge. He said that he decided to take preemptive measures.
Director Lee also said, “As a result of analyzing Samsung, Daechi, Cheongdam, and Jamsil-dong that were designated last year, there was an effect of stabilizing housing prices and preventing speculation after designation.” He added, “I am very concerned about the ballooning effect (according to the designation of licensed areas),” and “I will immediately review additional designation if market unrest or speculative influx is suspected,” suggesting the possibility of expanding the licensed area.
The city of Seoul announced that it plans to comprehensively review whether additional designation or extension of designation by continuously monitoring real estate market trends, etc., while making sure that transactions for the purpose of living are not affected at all, so that end users do not have any inconvenience.
In order to prevent the ballooning effect, the Yeouido district included a total of 16 complexes, including nearby reconstruction complexes, into a land transaction permission zone. The Seongsu Strategic Maintenance Zone is subject to transaction permission for all types of houses and land in the maintenance zone, such as apartments, villas, and shopping centers in Districts 1-4.
With this measure, the land transaction permission zone in Seoul has increased to 50.27 km2, including Jamsil-dong, Songpa-gu, and Samseong, Daechi, and Cheongdam-dong, Gangnam-gu.