Will the Daechi, Samsung, Cheongdam, and Jamsil Office Markets Revive? Exclusion from Land Transaction Permission Zones Under Review...

Enforcement of the Amendment to the Act on Reporting Real Estate Transactions
Seoul City "Possibility of Excluding Stable Real Estate for One Year"

Commercial and office properties in Daechi, Samsung, and Cheongdam-dong in Gangnam-gu, Seoul, as well as the Jamsil-dong area in Songpa-gu, are likely to be excluded from the land transaction permission zones as early as November. These areas have been regulated to prevent real estate speculation due to the development of the International Exchange Complex District, but there have been controversies over 'infringement of property rights.' With the recent legal amendment enabling 'pinpoint regulation' by usage, the Seoul Metropolitan Government plans to establish new criteria.

According to the real estate industry on the 20th, the amendment to the Act on Reporting and Confirmation of Real Estate Transactions was enforced the previous day. Going forward, the authority designating land transaction permission zones will be able to specify detailed matters such as the permit recipients and the permitted uses and land categories.

Accordingly, the Seoul Metropolitan Government plans to conduct a comprehensive review of the land transaction permission zones. A Seoul city official stated, "For uses where the market is relatively stable, we are considering establishing criteria to exclude them from the land transaction permission zones," adding, "Once the Ministry of Land, Infrastructure and Transport provides specific guidelines, we will apply and decide accordingly."

The Ministry of Land, Infrastructure and Transport is expected to distribute guidelines related to the designation and cancellation of land transaction permission zones to local governments within this week. Seoul is likely to submit related adjustment proposals to the Urban Planning Committee meeting scheduled for the first week of November.

Currently, the most likely plan is to exclude commercial and office real estate such as shops and offices in the International Exchange Complex District and nearby areas including Samsung, Cheongdam, Daechi, and Jamsil-dong from the land transaction permission requirements. The current land transaction permission zones have been criticized for infringing on property rights by restricting transactions of commercial and office real estate regardless of the system's original purpose of 'housing stability for actual demanders.'

In particular, the land transaction permission zones related to the International Exchange Complex District cover entire legal neighborhoods, resulting in stricter regulations. To purchase shops or offices located in Samsung, Cheongdam, Daechi, or Jamsil-dong, buyers must fulfill the 'self-management' obligation. For example, when acquiring a small building, at least one floor must be used for actual business. If these regulations are eased, transactions of properties registered for commercial or office use will be possible without land transaction permission.

However, Seoul is expected to continue regulating residential real estate such as apartments and villas. Additionally, in major reconstruction complexes designated as apartment districts rather than legal neighborhoods, such as Apgujeong in Gangnam-gu and Mok-dong in Yangcheon-gu, as well as in areas planned for rapid integrated redevelopment, regulations on commercial real estate are likely to be maintained. Currently, the land transaction permission zones in Seoul cover 55.99㎢, accounting for about 9.2% of the total area.

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