No Land Transaction Permission Zones Will Be Lifted This Year in Gangnam and Mokdong... "House Prices Need to Fall Further"

Seoul City Policy Decision

The Seoul Metropolitan Government has decided not to lift the designation of major redevelopment districts such as Gangnam and Mokdong as land transaction permission zones.

According to the Seoul city government on the 9th, the city recently set this policy considering the trends in the real estate market.

A senior city official explained, "We believe real estate prices need to fall further," adding, "If the land transaction permission zones are lifted at this point, transactions could become active again, potentially affecting housing prices, so we will not lift the designation."

Apartment in Mokdong, Yangcheon-gu, Seoul [Image source=Yonhap News]

Land transaction permission zones refer to areas where transactions of houses, commercial buildings, or land above a certain size require approval from the district office chief, and purchases are not allowed unless for direct residence or operation purposes. Once designated as such, so-called 'gap investments,' where buyers rent out or purchase homes with jeonse (long-term deposit lease), become impossible.

As of August 31 last year, 55.99㎢, equivalent to 9.2% of the city's total area, were designated as land transaction permission zones.

Among these zones, major redevelopment districts in Yangcheon, Yeongdeungpo, Seongdong, and Gangnam (4.57㎢) have their designation period expiring on April 26 this year.

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