HUG Designates High Price Management Areas Including Incheon, Daejeon, and Cheongju... 'Significant Expansion'

[Asia Economy Reporter Moon Jiwon] The Housing and Urban Guarantee Corporation (HUG) has designated most areas in the Seoul metropolitan area as high-priced housing management zones. Construction companies must undergo HUG's high-priced housing review when selling apartments in these areas to reduce the sale prices to appropriate levels.

On the 18th, HUG announced that it would expand the high-priced housing management zones to most areas in the Seoul metropolitan area, as well as Incheon, Daejeon, and Cheongju in Chungbuk. All regions included in the government's 'June 17 Real Estate Measures' as regulated areas are covered.

Previously, in the Seoul metropolitan area, only Seoul, Gwacheon in Gyeonggi, Gwangmyeong, Bundang in Seongnam, and Hanam, which were speculative overheated districts before the June 17 Real Estate Measures, were designated as high-priced housing management zones.

In Daejeon, only Seo-gu and Yuseong-gu were high-priced housing management zones, but with the entire area now designated as a regulated area, HUG has also designated all of Daejeon as a high-priced housing management zone. Cheongju, newly designated as a regulated area, has also been designated as a high-priced housing management zone.

HUG explained, "High-priced housing management zones were selected by comprehensively considering market conditions such as trends in sale and transaction price increases, government policies, and regulated areas."

HUG conducts a price review before issuing a sales guarantee certificate. Without this certificate, there are issues with local government sales approval and it is impossible to obtain interim loans from financial institutions. Therefore, HUG's high-priced housing review is used as a means to adjust sale prices.

HUG's significant expansion of high-priced housing management zones this time is interpreted as an effort to curb the real estate market in the Seoul metropolitan area, where housing prices have recently risen sharply. HUG plans to apply the high-priced housing review when issuing sales guarantees in the newly designated high-priced housing management zones starting from the 19th.

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