8 Public Redevelopment Candidates Designated as Land Transaction Permission Zones... Seoul City "Suppressing Speculation"

Eight redevelopment areas, including Heukseok 2 District in Dongjak-gu, Seoul, have been selected as pilot sites for the public redevelopment project. The pilot sites are Heukseok 2 in Dongjak-gu, Yangpyeong 13 and 14 in Yeongdeungpo-gu, Yongdu 1-6 and Sinseol 1 in Dongdaemun-gu, Bongcheon 13 in Gwanak-gu, Sinmunno 2-12 in Jongno-gu, and Gangbuk 5 in Gangbuk-gu. A view of Heukseok 2 District in Dongjak-gu on the 15th. Photo by Moon Honam munonam@

[Asia Economy Reporter Kim Hyemin] Eight public redevelopment candidate sites in Seoul, including Heukseok 2 District in Dongjak-gu, have been designated as land transaction permission zones for one year.

The purpose is to proactively prevent speculative demand, and transactions exceeding a certain scale require the approval of the district mayor. Residential land can only be purchased for actual residence purposes.

On the 20th, Seoul held the 1st Urban Planning Committee meeting and announced on the 21st that it had passed the designation plan for land transaction permission zones with these details. This is a follow-up measure following the announcement of eight public redevelopment candidate sites by Seoul City and the Ministry of Land, Infrastructure and Transport on the 14th, along with the intention to designate land transaction permission zones.

Accordingly, the public redevelopment candidate sites ▲Heukseok 2 in Dongjak-gu ▲Yongdu 1-6 in Dongdaemun-gu ▲Sinseol 1 in Dongdaemun-gu ▲Yangpyeong 13 in Yeongdeungpo-gu ▲Yangpyeong 14 in Yeongdeungpo-gu ▲Gangbuk 5 in Gangbuk-gu ▲Bongcheon 13 in Gwanak-gu ▲Sinmunno 2-12 in Jongno-gu will be subject to transaction regulations for one year starting from the 26th.

In these zones, transactions exceeding 18㎡ in residential areas, 20㎡ in commercial areas, and 66㎡ in industrial areas require district mayor approval. If a land transaction contract is made without approval, it is punishable by imprisonment of up to two years or a fine of up to 30% of the land price. In particular, residential land must be used only for actual residence for two years, prohibiting sale or lease during this period.

This decision was made to suppress speculation. Since all public redevelopment candidate sites are located near subway stations, there is a high risk of speculative demand inflow, prompting preemptive measures. Seoul City lowered the land area requiring approval to about 10% of the legal standard area (exceeding 18㎡ in residential areas, 20㎡ in commercial areas) to expand the regulatory scope.

Lee Jeong-hwa, Director of Seoul City Urban Planning Bureau, said, "As public redevelopment projects have recently become visible, the possibility of real estate overheating in the relevant areas has increased," adding, "We plan to actively consider designating land transaction permission zones not only for future announced public redevelopment candidate sites but also for areas applying for public contests if speculative demand is detected."