Government Considers Adding Parts of Suwon, Yongin, and Seongnam to 'Adjustment Target Areas'

Ministry of Land, Infrastructure and Transport "Closely Monitoring Overheating in Some Areas"
Including Suwon Gwonseon and Yeongtong Districts, Seongnam Sujeong District, etc.

(Photo by Yonhap News)

[Asia Economy Reporter Moon Jiwon] Some areas in Suwon, Yongin, and Seongnam (collectively known as Suyongseong), where prices have surged sharply due to the 'balloon effect' following the December 16 real estate measures announcement, are expected to be designated as regulated areas.

On the 13th, the government reportedly held a 'Green Room Meeting' chaired by Deputy Prime Minister and Minister of Strategy and Finance Hong Nam-ki, with ministers from related departments attending, to discuss this matter.

A Ministry of Land, Infrastructure and Transport official stated, "We are closely monitoring the recent overheating of housing prices in some areas," adding, "If necessary, we plan to take measures such as designating regulated areas."

The Ministry of Land, Infrastructure and Transport is said to be preparing to hold a Residential Policy Deliberation Committee meeting soon to discuss designating parts of the metropolitan area, including Suwon and Yongin, where housing prices have recently risen sharply, as regulated areas.

According to a survey by the Korea Real Estate Board, districts such as Gwonseon-gu, Yeongtong-gu, and Paldal-gu in Suwon have shown a price increase of over 1% as of last week. The price increase rate has been expanding weekly, raising concerns about serious overheating in the real estate market.

Currently, among the 'Suyongseong' areas, Paldal-gu and Gwanggyo District in Suwon, Suji and Giheung Districts in Yongin, and Bundang-gu in Seongnam are already designated as regulated areas.

Therefore, it is highly likely that Gwonseon-gu and Yeongtong-gu in Suwon and Sujeong-gu in Seongnam, which are not yet designated as regulated areas, will be newly added to the list.

If designated as regulated areas, regulations will be strengthened, including limiting the Loan-to-Value ratio (LTV) to 60% and applying a Debt-to-Income ratio (DTI) of 50%.

Some analysts suggest that the government might take this opportunity to simultaneously designate these areas as speculative overheating districts, which would impose even stronger regulations, considering redevelopment projects in Suwon. If designated as speculative overheating districts, LTV and DTI limits would be reduced to 40%.

This content was produced with the assistance of AI translation services.