Gyeongnam Province Requests Removal of Speculative Overheated Zone Designation in June

Preparation for Requesting Deregulation Considering Local Conditions After Designation of Bukmyeon and Dong-eup as Speculative Overheated Zones Last December

[Asia Economy Yeongnam Reporting Headquarters Reporter Park Saeyan] Gyeongsangnam-do is preparing procedures to request the cancellation of the designation of speculative overheating zones in the Dong-eup and Buk-myeon areas of Uichang-gu.

Previously, on December 18 last year, the Ministry of Land, Infrastructure and Transport designated Uichang-gu (excluding Daesan-myeon) as a speculative overheating zone and Seongsan-gu as a regulated area.

Since then, the province has continuously monitored the real estate market within the province, including the Buk-myeon and Dong-eup areas.

As a result, apartment prices in the Buk-myeon and Dong-eup areas were significantly lower than the average in Uichang-gu.

Additionally, the share of apartment transactions in these areas accounted for about 11% of the total transactions in Uichang-gu, which is not large, and due to underdeveloped urban infrastructure causing unsold units, the effectiveness of the speculative overheating zone designation is limited.

In response, Heo Dongsik, Director of Urban Transportation at Gyeongnam Province, stated, “The initially feared balloon effect did not occur, and considering the wishes of local residents and regional circumstances, we will actively pursue the request for cancellation within the first half of the year so that the agenda can be submitted to the Ministry of Land, Infrastructure and Transport’s Housing Policy Deliberation Committee in June.”