Why Do Seongdong-gu and Songpa-gu Have Different Stances on the 'Land Transaction Permission System'?

Seongdong-gu Urges Designation of Land Transaction Permit System Due to Soaring Land Prices in Seongsu-dong... Songpa-gu Requests Lifting of Land Transaction Permit System in Jamsil-dong Citing Private Property Rights Infringement

Seongdong-gu and Songpa-gu in Seoul are drawing attention by showing opposing stances on the land transaction permit system.

Land transaction permit zones are designated to prevent speculation in areas where land prices have surged or are expected to surge. When the Minister of Land, Infrastructure and Transport or the Mayor of Seoul designates an area as a land transaction permit zone, land within the zone cannot be traded without the approval of the head of the local government in charge.

Seongdong-gu urged the designation of a land transaction permit zone due to concerns over rising commercial rent caused by soaring land prices in Seongsu-dong, while Songpa-gu is requesting the cancellation of the land transaction permit zone in the Jamsil area.

Seoul City is expected to monitor the situation for the time being before making a decision.

Jung Won-oh, Mayor of Seongdong District

◇Seongdong-gu Pushes to Designate Entire Seongsu-dong as Land Transaction Permit Zone

Seongdong-gu has decided to push for the designation of the entire Seongsu-dong area as a land transaction permit zone as land prices in Seongsu-dong have reached 250 million KRW per pyeong (approximately 3.3 square meters).

On the 26th, Jung Won-oh, Mayor of Seongdong-gu, told reporters, “The land price on Yeonmujang-gil in Seongsu-dong, which reached 100 million KRW per pyeong just a few years ago, recently surpassed 150 million KRW and 200 million KRW consecutively, and there have even been cases of sales at 250 million KRW per pyeong,” adding, “I believe this is a very speculative phenomenon.”

He continued, “This trend causes a sharp rise in land prices and rents in the area, which is negative for the future of Seongsu-dong in the long term,” and explained, “We will fully consult and request Seoul City to designate Seongsu-dong as a land transaction permit zone.”

A senior official from Seongdong-gu stated on the 30th, “From October 19, pinpoint regulations became possible, allowing the designation of land transaction permit zones focusing on land excluding apartment complexes in Seongsu-dong.”

◇Songpa-gu Requests Cancellation of Land Transaction Permit Zone in Jamsil-dong Area

Songpa-gu (Mayor Seo Gang-seok) sent official letters to Seoul City on June 10 and September 14, requesting the cancellation of the land transaction permit zone designation in the Jamsil-dong area.

Seo Gang-seok, Mayor of Songpa-gu, stated, “The designation of land transaction permit zones is an extreme measure against private property rights and should be applied only temporarily and exceptionally, but the fundamental infringement forcing residents to suffer has continued for three years,” adding, “Now that real estate prices are stabilizing downward, it is the right time to ease the land transaction permit zones.”

On June 7, Seoul City held an urban planning committee meeting and re-designated the entire 5.2 million square meters of Jamsil-dong as a land transaction permit zone. This decision extended the effect of the land transaction permit zone designation in Jamsil-dong, which had been in place for three years since June 23, 2020, by one more year.

Land transaction permit zones are restrictive measures designated in areas where land speculation is rampant or where land prices are expected to rise sharply. However, according to the district, in Jamsil-dong, residents’ fundamental property rights are being infringed without special reasons.

A district official expressed concern, saying, “The MICE project plan in Jamsil-dong was announced long ago, and the benefits from development expectations have already been realized, so the practical effect of the permit zone designation has disappeared,” and questioned, “There is still a long time until the MICE project completion, but is indefinite land transaction permit zone designation the only solution?”

The official also pointed out the “unfair treatment” compared to other areas. The Jamsil-dong permit zone designation is an excessive measure that includes even reconstructed complexes where there is no speculation concern, and it should be distinguished from the Gangnam case where only reconstruction complexes with speculation overheating concerns were designated as land transaction permit zones.

However, as of the 31st, Seoul City has not shown any particular stance.

◇Seoul City Caught Between a Rock and a Hard Place

It is noteworthy that Seongdong-gu and Songpa-gu have shown different positions regarding the land transaction permit system.

Seongdong-gu is concerned that if land prices soar in Seongsu-dong, commercial rents will rise significantly, making it difficult for shop owners to operate their businesses.

On the other hand, Songpa-gu appears to be trying to prevent losses caused by infringement on property rights of landowners whose land is restricted by the land transaction permit system.

While one side calls for “restriction,” the other calls for “relaxation,” showing differing positions within Seoul, which puts Seoul City’s stance in the spotlight.

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