Full Lift of Regional 'Adjusted Target Areas'... Seoul Maintains Current Status

Selected Removal of Speculative Zones in 5 Areas: Dongducheon, Yangju, Paju, Pyeongtaek, Anseong
Incheon and Sejong Removed from Speculative Overheating Zones, Adjustment Areas Maintained
"Considering Recent Housing Market Conditions... No Sharp Price Surge Expected Even After Removal"

Photo by Asia Economy

Amid a nationwide decline in housing prices, the government has decided to lift all 'adjustment target areas' in local metropolitan cities and provinces. However, in Sejong, only the speculative overheating district will be lifted, while the adjustment target area will be maintained. In the Seoul metropolitan area, the speculative overheating district in Incheon, where the decline is steep, will be lifted, but the adjustment target area will remain. Additionally, adjustment target areas will be lifted in five locations: Dongducheon, Yangju, Paju, Pyeongtaek, and Anseong. However, the current regulatory areas in Seoul will remain unchanged.

On the 21st, the government held the 3rd Residential Policy Deliberation Committee (Jujeongshim) and the 61st Real Estate Price Stabilization Deliberation Committee, where they reviewed and approved the 'Adjustment of Speculative Overheating Districts and Adjustment Target Areas (Draft)' and the 'Lifting of Housing Speculative Areas (Designated Areas) in September 2022 (Draft)'.

First, the Ministry of Land, Infrastructure and Transport (MOLIT) comprehensively considered market conditions such as housing prices and made significant adjustments to regulatory areas at the Jujeongshim.

Adjustment target areas in local regions (excluding Sejong) and some outer areas of the Seoul metropolitan area were lifted, and the speculative overheating districts in Incheon and Sejong, excluding Seoul and Gyeonggi, were lifted.

Private committee members judged that "recently, the decline in housing prices has expanded, and downward stabilizing factors such as rising interest rates have increased." Especially in local areas, considering the expanded decline and increase in unsold homes, they saw the need for a proactive lifting of regulatory areas.

The committee members concluded, "Considering the recent price decline, decrease in transaction volume, expansion of unsold homes, the downward stabilization trend in the housing market, and the effects of previously lifted areas in the first half of the year, it is necessary to lift all adjustment target areas in local regions."

In the case of Sejong City, considering the recently continuously expanding decline in housing prices, the speculative overheating district will be lifted, but the adjustment target area will be maintained due to the low unsold home status and high subscription competition rates.

In the Seoul metropolitan area, although the downward trend generally continues, regulatory areas in Seoul and adjacent regions will be maintained, and market conditions will be further monitored. This is due to the relatively low number of unsold homes and the possibility of market instability arising from expectations of regulatory easing.

Opinions were presented that a more cautious approach is necessary for Seoul and adjacent areas, considering that housing prices are still at a high level and the period of price decline has not been long.

In Incheon, considering the large price decline, the speculative overheating district will be lifted first. In Gyeonggi Province, some adjustment target areas located in border and outer regions will be lifted.

Gyeonggi Province will lift some adjustment target areas located in border and outer regions.

Kwon Hyuk-jin, Director of the Housing and Land Office at MOLIT, said, "The Residential Policy Deliberation Committee decided to lift these regulatory areas by comprehensively considering factors such as the recent downward stabilization of housing prices, decrease in housing transaction volume, and continuous interest rate hikes," adding, "The dominant opinion was that the Seoul metropolitan area should be monitored for market conditions for the time being."

At the Real Estate Price Stabilization Deliberation Committee, the Ministry of Economy and Finance reviewed whether Sejong City met the criteria for designation as a housing speculative area and lifted it from the housing speculative area designation.

This considered the resolution of the need to maintain the speculative area due to the continuous decline in housing sale prices in Sejong City. Also, even after lifting the speculative area designation, the adjustment target area designation will be maintained, reflecting the low risk of instability such as housing price increases in the future.

The decisions made will take effect from 0:00 on Monday, September 26, when the official gazette publication is completed. At the Residential Policy Deliberation Committee on that day, Lee Won-jae, the 1st Vice Minister of MOLIT, said, "We adjusted regulatory areas by comprehensively considering recent housing prices and market conditions," and added, "We will closely monitor the housing market situation and steadily implement follow-up measures to realize stable housing for the public."

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