Gangnam and Mok-dong land transaction permit zones are not released… “House prices should fall further” – Nationwide Maeil Newspaper

Seoul Metropolitan Government, ahead of the expiration of the designated deadline in April… ‘Gap investment’ is not possible

View of downtown Gangnam from Namsan Mountain in Seoul. [연합뉴스 자료사진]

Seoul Gangnam and Mok-dong land transaction permit zones are maintained.

The Seoul Metropolitan Government announced on the 9th that it had decided not to lift the land transaction permit zones in Gangnam and Mok-dong, whose designation period expires next month, in consideration of recent trends in the real estate market.

A high-ranking city official said, “I believe that real estate prices should fall further than they are now.”

The land transaction permission zone refers to an area set up so that when trading houses, commercial buildings, or land of a certain size or larger, you must obtain permission from the head of the competent district and cannot purchase it unless it is for direct residence or operation.

If this area is designated, it is impossible to make a so-called ‘gap investment’, which is to let go of a lease or to buy a house with a jeonse.

As of August 31 of last year, 55.99㎢, or 9.2% of the city’s total area, was designated as a land transaction permit zone.

A view of Mokdong Apartment. [양천구 제공]

Among the land transaction permission zones, major reconstruction complexes (4.57㎢) in Yangcheon, Yeongdeungpo, Seongdong, and Gangnam will expire on the 26th of next month.

Subsequently, the international exchange complex and neighboring areas (Samsung, Cheongdam, Daechi, Jamsil, 14.4㎢) will be scheduled for June 22nd, and the public redevelopment candidate site and the rapid integrated planning (Shintong Planning) reconstruction/redevelopment scheduled site (2.64㎢) will be scheduled for August 30th. Japan, Gangnam and Seocho Natural Green Areas (Gaepo, Segok, Suseo, Yulhyeon, Jagok, Irwon, Daechi, Naegok, Sinwon, Yeomgok, Wonji, Umyeon, Bangbae, Seocho, Yangjae, 27.29㎢) will be designated sequentially on May 30 next year. The deadline is over.

Some have predicted that in line with the market downturn and the government’s successive deregulation, the city may lift the designation of zones for areas where major reconstruction complexes are concentrated, such as Mok-dong and Gangnam (April 26), which are closest to the expiration of the designation period.

However, it seems that the city was concerned that the real estate market could be stimulated if even the regulation is lifted in that the land transaction permit zone is a minimum safety device to block speculative demand and protect actual residents.

If the current market conditions continue, it will be difficult to lift the zone designation in areas such as Samsung and Daechi, whose designation deadlines expire in June and August.

[전국매일신문] Reporter Lim Hyeong-chan
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