'Mini New Town' Yongsan Shows Signs of Price Surge... Government Considers 'Land Transaction Permission Zone'

Increased Buying Sentiment Following Announcement of 8,000 Household Supply Plan
Good Accessibility to Seoul City Center and Favorable Residential Environment
Designation of Land Transaction Permission Zone to Prevent Speculation in Advance

The Ministry of Land, Infrastructure and Transport announced a plan to supply 8,000 housing units, equivalent to a mini new town, on the site of the Yongsan Station railway maintenance depot in Seoul on the 6th. (Photo by Yonhap News)

[Asia Economy Reporter Moon Jiwon] The government is considering designating the area around the Yongsan Railroad Maintenance Depot site in Seoul, where signs of rising housing prices have appeared following the announcement of the '8,000 housing units supply' plan, as a land transaction permission zone.

According to the Ministry of Land, Infrastructure and Transport and the Seoul Metropolitan Government on the 11th, the government is reportedly conducting a review to designate the area near the Yongsan Maintenance Depot, where buying sentiment has concentrated immediately after the announcement of the metropolitan area housing supply plan on the 6th, as a land transaction permission zone.

If designated as a land transaction permission zone, acquiring land exceeding a certain area by use?residential, commercial, or industrial?requires prior approval from the mayor or district head.

The purpose of acquisition is also strictly limited. Housing can only be acquired by actual residents, and commercial properties only by self-employed individuals or genuine demanders. There are also restrictions requiring the land to be used for the approved purpose for a certain period.

The reason the government is considering designating the land transaction permission zone is that recently, inquiries for purchases have surged in apartment complexes near Yongsan, and listings have been withdrawn, indicating strong signs of rising housing prices.

Earlier, on the 6th, the Ministry of Land, Infrastructure and Transport announced through the 'Plan to Strengthen Housing Supply in the Metropolitan Area' that 8,000 housing units would be supplied on the Yongsan Maintenance Depot site. Since the Gwacheon 3rd New Town has about 7,000 units, if the government’s plan proceeds as scheduled, it would effectively create a 'mini new town' in the heart of Seoul.

Of the 8,000 units, approximately 5,500 units are estimated to be general sales, including 4,000 private sale units and 1,500 public sale units. Although some have expressed negative views that the proportion of public rental housing is excessively high, speculative fervor is intensifying. The Yongsan Maintenance Depot site has excellent accessibility to downtown Seoul and favorable residential conditions, making it a highly attractive area for genuine demanders.

In the past, the government has designated areas expected to be speculative as land transaction permission zones to prevent speculation in advance and stabilize housing prices. In 2018 and last year, areas such as Wangsu in Namyangju and Gyosan in Hanam, designated as 3rd New Towns in Gyeonggi Province, were designated as land transaction permission zones for two years. The Ministry of Land, Infrastructure and Transport and the Seoul Metropolitan Government are also reportedly considering deploying joint anti-speculation task forces to development sites including the Yongsan Maintenance Depot.

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