Yongsan Jeongbichang Also Likely to Extend Land Transaction Permission Zone

Positive Factors Including Presidential Office Relocation

Yongsan Housing Prices Show Slight Increase This Month

Ministry of Land to Discuss Re-designation Next Month

Transition Committee Also Begins Reviewing Regulation Strengthening

[Asia Economy Reporter Kim Min-young] The Ministry of Land, Infrastructure and Transport will decide in May whether to extend the designation of the Yongsan Maintenance Depot site as a land transaction permission zone. With the positive factor of the presidential office relocation to Yongsan, a recent upward trend in housing prices has been observed, strengthening the possibility of re-extension to moderate this. It is also highly likely that the designation of land transaction permission zones in Seoul’s Apgujeong, Yeouido, Mokdong, and Seongsu areas, decided by the Seoul Metropolitan Government, will be extended once more.

According to Seoul City on the 13th, the Ministry of Land will decide next month on whether to re-extend the land transaction permission zone designation for 13 redevelopment and reconstruction project areas around the Yongsan Maintenance Depot site, Hangangno-dong, and Ichon 2-dong, after review by the Central Urban Planning Committee. The Ministry designated this area as a land transaction permission zone on May 6, 2020, when it announced plans to supply a total of 8,000 urban-type public housing units within the Yongsan Maintenance Depot site, to prevent the influx of short-term speculative forces. To enter into contracts for land acquisition exceeding the permitted area in a land transaction permission zone, prior approval from the district mayor is required. In particular, residential land must be used solely for actual residence for two years, prohibiting sale or lease during that period. This aims to block short-term speculative forces seeking development profits.

A Seoul city official stated, "Before deciding on re-extension next month, the Ministry of Land asked Seoul City for its opinion." Industry insiders weigh the possibility of extension heavily, as the presidential office relocation and easing of reconstruction regulations act as positive factors causing recent housing price increases in Yongsan. According to the Korea Real Estate Board, the weekly apartment prices in Yongsan-gu, which had been declining until March 21, rose by 0.02% in the first week of April (4th), leading the increase in Seoul apartment prices.

The fact that the Presidential Transition Committee began reviewing from the 3rd the possibility of advancing the enforcement date of land transaction permission zone regulations also supports this outlook. Under current law, the effect of land transaction permission zone regulations takes place "five days after the announcement." However, the Transition Committee plans to change this to "immediately after the announcement."

Meanwhile, the re-extension of land transaction permission zones in Apgujeong, Yeouido, Mokdong, and Seongsu is considered a foregone conclusion. According to Seoul City, the Urban Planning Committee will meet on the 20th to discuss the re-designation of the four areas whose designation expires on the 26th. A Seoul city official said, "There is a possibility the meeting will be held privately, so the results will likely be announced around the 21st or 22nd through a public notice." Ahead of the new government, housing prices in these areas, where reconstruction complexes are concentrated, are also fluctuating amid expectations of regulatory easing.

Seoul Mayor Oh Se-hoon also mentioned recent market movements at a press conference marking his first anniversary in office yesterday, stating, "Under the policy of suppressing price increases as much as possible, we will closely cooperate with the central government to implement housing supply."

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