'Ap·Yeo·Mok·Seong' Land Transaction Permission System Begins... Record Prices Until the Last Moment, Will Reconstruction Accelerate Too? (Comprehensive)

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyemin] Redevelopment and reconstruction complexes in Apgujeong-dong, Yeouido, Mok-dong, and Seongsu-dong in Seoul have been designated as land transaction permission zones starting from the 27th, and the designation has taken effect. Record-high prices continued until the last moment, and while regulations to block speculative demand have been strengthened, efforts to accelerate project promotion are also underway.

The Apgujeong Apartment District includes all 24 complexes concentrated around Apgujeong Station. The Mok-dong district also includes all 14 complexes in the Mok-dong New Town. However, to minimize regulatory impact, commercial areas in the Mok-dong district were excluded.

The Yeouido district includes a total of 16 complexes designated as land transaction permission zones, covering not only reconstruction projects within the Yeouido Apartment District such as Sibeom and Sambu Apartments but also nearby apartments including Sujeong, Gongjak, Seoul, Jinju, and Chowon Apartments. The Seongsu Strategic Maintenance Zone (Districts 1 to 4) requires land transaction permission for all types of housing and land within the maintenance zone, including apartments, villas, and commercial properties.

In land transaction permission zones, purchasing real estate with a land share exceeding a certain area (18㎡ for residential use, 20㎡ for commercial use) requires permission from the head of the relevant district office. Houses can only be occupied for actual residence for two years, making monthly or yearly rental leases impossible. 'Gap investment,' where a house is bought with borrowed money to cover the difference, is also prohibited.

For these reasons, in these areas, record-high price transactions were actively conducted from the 21st, when Seoul announced the designation of land transaction permission zones, until just before the enforcement date.

On the 23rd, Misung 2nd Complex in Apgujeong-dong, Gangnam-gu (with an exclusive area of 140.9㎡) was traded at a record high of 3.98 billion KRW. This is an increase of 520 million KRW compared to the highest price at the end of January (3.46 billion KRW). This complex, which belongs to District 1 among the six special planning zones in Apgujeong, is currently promoting the establishment of a union.

On the same day, the 2nd Complex of Mok-dong New Town in Yangcheon-gu (exclusive area 95.67㎡) exceeded 2 billion KRW for the first time. Another apartment with an exclusive area of 122.31㎡ in the same complex was traded at 2.35 billion KRW on the 25th, setting a new record high. Mok-dong has seen a total of eight record-high transactions this month.

Since the reporting deadline for actual transaction prices is within 30 days after the contract, it is highly likely that even higher record prices will be reported.

Meanwhile, Seoul City appears to be both restricting speculative demand by designating land transaction permission zones and accelerating reconstruction and redevelopment projects.

First, Seoul City has set a goal to complete the Yeouido district unit plan within the year. The district unit plan is a higher-level plan prepared before establishing reconstruction maintenance project plans for apartment complexes. The city plans to sequentially promote detailed development plans for each complex as soon as the district unit plan is established. This is intended to prevent project delays caused by comprehensive development restrictions.

Regarding the expectation that the height limit will be set at 50 floors, the city explained, "No decisions have been made yet regarding building heights." However, Seoul City added, "Yeouido Apartment District is designated as a downtown area in the Seoul Metropolitan Plan, and if built as mixed-use residential and commercial buildings, buildings over 50 floors are possible. We are establishing appropriate height plans through various simulations tailored to the overall Yeouido skyline and the characteristics of each complex."

Along with this, Seoul City has released the district unit plan for the Jamsil Asia Athlete Village in Songpa-gu and started public viewing for residents. The district unit plan for Amsa and Myeongil Apartment Districts in Gangdong-gu has also been opened for viewing. The city plans to finalize the district unit plans after procedures such as traffic impact assessments and reviews by the Urban Architecture Joint Committee.

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