Government May Include Gunpo, Ansan, Guri in Regulated Areas... Additional Measures Expected

Close Watch on Gunpo, Ansan, Guri, Incheon, Daejeon, and Cheongju

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] The government is expected to introduce additional regulatory measures for non-regulated areas on the outskirts of the Seoul metropolitan area, such as Gunpo, Ansan, and Guri, where housing prices have recently surged significantly.

According to the Ministry of Economy and Finance on the 14th, the government is reportedly considering designating these areas with skyrocketing housing prices as regulated zones or imposing loan restrictions by lowering the loan-to-value ratio (LTV) for houses priced under 900 million KRW.

A government official stated, "Housing prices have risen sharply in Gunpo, Ansan, Guri, Incheon, Daejeon, and Cheongju recently," adding, "We are reviewing the possibility of designating non-regulated areas as new regulated zones." In particular, Incheon Yeonsu-gu and Seo-gu, Ansan Danwon-gu and Sangnok-gu, and Daejeon experienced significant price increases due to the balloon effect.

The government is considering designating regulated areas and strengthening loan regulations to stabilize the real estate market. Kim Yong-beom, the first vice minister of the Ministry of Economy and Finance, emphasized at a briefing after the 6th Emergency Economic Central Countermeasures Headquarters meeting held at the Seoul Government Complex on the 11th, "We may designate regulated areas, strengthen loan regulations, or review measures to supplement or reinforce tax policies if there are shortcomings."

Vice Minister Kim added, "The absence of regulations does not cause nationwide fluctuations in real estate prices." This suggests that even if the government imposes additional regulations on non-metropolitan areas, the balloon effect will be limited.

Meanwhile, the government may set new loan criteria for houses priced under 900 million KRW and 600 million KRW, strengthen LTV limits (40% for speculative areas under 900 million KRW, 50% for adjusted target areas), or lower the current mortgage loan prohibition threshold from over 1.5 billion KRW to below that. However, the market points out concerns that if the government's designation of new regulated areas coincides with regional development demand, the balloon effect could spread further.

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