Please Remove Changwon Seongsan-gu from the Speculative Overheating District!

Gyeongnam Province Requests Ministry of Land to Remove Adjustment Area Designation

Gyeongnam Provincial Government. / Photo by Se-ryeong Lee ryeong@

[Asia Economy Yeongnam Reporting Headquarters Reporter Lee Seryeong] Gyeongsangnam-do has once again requested the Ministry of Land, Infrastructure and Transport to lift the designation of Seongsan-gu, Changwon City as a regulated adjustment area.

Gyeongnam Province announced that after visiting the Ministry of Land on August 26, it formally requested that the issue be submitted as an agenda item for deliberation at the Ministry's Housing Policy Deliberation Committee scheduled for the second half of this year.

According to the province, Seongsan-gu, along with Uichang-gu, was designated as a regulated area on December 18, 2020.

The province stated that it has repeatedly appealed to the Ministry of Land regarding local conditions and residents' complaints, resulting in some parts of Uichang-gu being removed from the speculative overheating district on August 27 last year.

It explained that the apartment sales price index increase rate in Seongsan-gu, which belongs to the speculative overheating district, has consistently lagged behind the inflation rate in Gyeongnam from January to July this year.

Map of Seongsan-gu, Changwon-si, Gyeongnam. [Image source=Naver Map]

A provincial official said, "The quantitative condition for designating an adjustment area, which requires the housing price increase rate over the past three months to exceed the city/province consumer price increase rate by 1.3 times, has been resolved."

Uichang-gu, which was removed from the speculative overheating district on July 5, saw a 21% decrease in apartment transactions between April and July, while apartment transactions in Seongsan-gu decreased by 60%, from 397 units in April to 158 units in July, the official added.

The official emphasized, "Even after Uichang-gu was removed from the regulated area, the weekly apartment sales price index continued to decline, indicating that the local real estate market is stable. Therefore, the prompt removal of Seongsan-gu, which is adjacent to Uichang-gu, is necessary."

Heo Dongsik, Director of the Urban Housing Bureau, said, "We will actively work in close cooperation with related organizations such as the Ministry of Land and Changwon City to ensure that Seongsan-gu, Changwon City, is promptly removed from the adjustment area," and added, "We hope that attention will be paid to the real estate policies promoted by the province to achieve both regional economic revitalization and stabilization of the real estate market."

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