Suncheon-si Designated as Real Estate Adjustment Area... Loan Regulations, etc.

Mandatory Submission of Funding Plan When Trading Residential Properties

[Asia Economy Honam Reporting Headquarters Reporter Lee Hyung-kwon] According to the decision of the Ministry of Land, Infrastructure and Transport's Housing Policy Deliberation Committee, Suncheon City, along with the neighboring cities of Yeosu and Gwangyang, has been designated as a regulated area, effective from the 18th.

In Suncheon City, the eastern region, Haeryong-myeon, and Seomyeon have been included in the regulated area, but the remaining nine eup and myeon regions (Seungju-eup, Hwangjeon-myeon, Woldeung-myeon, Juam-myeon, Songgwang-myeon, Oeseo-myeon, Nagan-myeon, Byeollyang-myeon, and Sangsa-myeon) were excluded.

The regulated area is designated by the Housing Policy Deliberation Committee for regions where the housing price increase rate over three months exceeds 1.3 times the consumer price increase rate and where housing sales are overheated or expected to be overheated.

Once designated as a regulated area, according to the Enforcement Decree and Enforcement Rules of the Real Estate Transaction Reporting Act, a financing plan must be submitted when trading housing, regardless of the transaction price.

This applies without exception to supply contracts for multi-family housing and resale of pre-sale rights.

The financing plan is a document that the buyer among the transaction parties must submit, and failure to submit it may result in a fine for violating the Real Estate Transaction Reporting Act.

With Suncheon City selected as a regulated area this time, it will be subject to various regulations.

The loan-to-value ratio (LTV) is limited to 50% for amounts up to 900 million KRW and 30% for amounts exceeding 900 million KRW, and the debt-to-income ratio (DTI) is set at 50%, among other loan restrictions.

Additionally, real estate-related taxes such as capital gains tax and comprehensive real estate holding tax have been strengthened, the eligibility requirements for first-priority subscription have been raised, and resale of pre-sale rights is restricted until the ownership transfer registration.

Suncheon City expects that this real estate measure will early block the spread of overheating in the real estate market, establish a housing market order centered on actual demand, and stabilize the market.

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