Jeonju City Requests Removal from Regulated Area Designation to the Ministry of Land, Infrastructure and Transport

Determining Fulfillment of Deregulation Criteria Such as Housing Price Increase Rate and Pre-sale Right Resale Volume

[Jeonju=Asia Economy Honam Reporting Headquarters Reporter Kim Han-ho] Jeonju City announced on the 17th that it has requested the Ministry of Land, Infrastructure and Transport to lift the designation of Jeonju as a regulated area.

Jeonju City decided this after continuously monitoring the housing market since its designation as a regulated area in December 2020, and as of June, it has met all the conditions for lifting the designation.

It added that the decrease in housing transaction volume and the slowdown in the rise of housing sale prices were also reasons for the request to lift the designation.

Under the current Housing Act, the conditions for designating a regulated area are regions where the housing price increase rate over the past three months exceeds 1.3 times the consumer price increase rate by city/province, and among these, one of the following conditions applies: △the average monthly subscription competition rate over the past two months exceeds 5:1 (10:1 for national housing scale) △the volume of pre-sale rights resale transactions over the past three months has increased by 30% or more compared to the same period last year △the housing supply rate or owner-occupied housing ratio by city/province is below the national average.

In the case of Jeonju, the recent housing price increase rate over the past three months (1.10) is below 1.3 times the consumer price increase rate (3.37), and the volume of pre-sale rights resale transactions has decreased by 62% compared to the same period last year. The housing supply rate in Jeollabuk-do also exceeds the national average.

Previously, Jeonju was designated as a regulated area on December 18, 2020, which led to strengthened regulations such as △loan restrictions △pre-sale rights resale restrictions △increased capital gains tax and acquisition/registration tax for multi-homeowners.

Jeonju=Honam Reporting Headquarters Reporter Kim Han-ho stonepeak@asiae.co.kr

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