Regulation Areas Lifted Except Gangnam 3 Districts and Yongsan... Price Ceiling Target Areas Also Reduced

[Asia Economy Reporter Cha Wanyong] The government is considering lifting regulatory restrictions on all areas except the three Gangnam districts of Seoul (Gangnam, Seocho, Songpa) and Yongsan District. It is also reported that a reduction in the areas subject to the price ceiling system for pre-sale apartments is being considered.

Seoul cityscape viewed from the Lotte World Tower Observatory in Songpa-gu, Seoul./Photo by Jinhyung Kang aymsdream@

According to government ministries on the 2nd, the Ministry of Land, Infrastructure and Transport is confirmed to plan a large-scale lifting of regulatory areas within this month.

Currently, regulatory areas include all of Seoul and four cities in Gyeonggi Province?Gwacheon, Seongnam (Bundang and Sujeong Districts), Hanam, and Gwangmyeong?designated as adjusted target areas and speculative overheating districts. Additionally, 15 districts in Seoul?Yongsan, Seongdong, Nowon, Mapo, Yangcheon, Gangseo, Yeongdeungpo, Seocho, Gangnam, Songpa, Gangdong, Jongno, Jung, Dongdaemun, and Dongjak?remain designated as speculative districts.

The government is considering lifting regulations on all these areas except for the three Gangnam districts and Yongsan District in Seoul, where there are concerns about housing price increases if regulations are lifted.

This is due to the recent significant decline in housing prices. In fact, Nowon District has seen a housing price drop of 5.47% over the past three months, more than twice the Seoul average, and Dobong District has experienced a 4.11% decline. Other districts such as Gangbuk, Seongbuk, Jungnang, Geumcheon, and Guro are also seeing declines exceeding 2%.

The government is also reviewing an announcement to reduce the areas subject to the pre-sale price ceiling system along with the lifting of regulatory areas. However, specific target areas or the extent of the reduction have not been confirmed.

The pre-sale price ceiling system areas are designated within speculative overheating districts where there are concerns about housing price overheating or high pre-sale prices due to redevelopment or reconstruction projects.

Currently, 13 districts in Seoul including Gangnam and three cities in Gyeonggi Province (Hanam, Gwangmyeong, Gwacheon) with 322 blocks are designated as areas subject to the pre-sale price ceiling system. If removed from the ceiling system, regulations such as mandatory residence periods of 3 to 5 years for public land and 2 to 3 years for private land will be lifted.

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