[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province will newly designate 3.35㎢ of forest and farmland in 18 cities and counties, including Suwon City, as a "Land Transaction Permission Zone" from the 28th of this month until June 27, 2023, to block speculative investment by planned real estate.
Gyeonggi Province announced on the 23rd that it held a recent Gyeonggi Province Urban Planning Committee meeting and approved the designation plan for the Land Transaction Permission Zone containing this content.
The designation target this time is an area of concern for planned real estate speculation based on actual transaction records from November last year to March this year.
The area includes 9,620㎡ of forest in Homaesil-dong, Gwonseon-gu, Suwon City, 74,123㎡ of forest in Gogi-dong, Suji-gu, Yongin City, and 169 parcels totaling 3.35㎢, which is 1.15 times the size of Yeouido.
The province took the step of designating the Land Transaction Permission Zone to eradicate speculative acts by planned real estate investors who buy forests and other lands that are practically difficult to develop at low prices and then sell them expensively as shared ownership while citing development prospects.
The province designated areas of concern for planned real estate speculation as Land Transaction Permission Zones four times last year in March, July, August, and December.
After the designation of the Land Transaction Permission Zone, parcels exceeding 100㎡ for forest land (50㎡ for farmland) require permission from the competent mayor or county governor to be traded, or even if the area is below the permitted size, the first shared ownership transaction requires permission.
Those who enter into contracts without permission or obtain permission by fraudulent means face imprisonment for up to two years or a fine equivalent to 30% of the land price based on the individual publicly announced land price at the time of contract conclusion.
The province published the announcement of the permission zone designation in the Gyeonggi Province Gazette on the 23rd and notified the Ministry of Land, Infrastructure and Transport and the cities and counties.
A provincial official emphasized, "The designation of Land Transaction Permission Zones four times last year resulted in about a 33% decrease in forest land shared ownership transactions," adding, "We will continue preventive measures against real estate speculation by expanding the designation of Land Transaction Permission Zones in areas of concern and where speculation is ongoing to fundamentally block planned real estate speculation."
Meanwhile, analyzing the average monthly volume of forest land shared ownership transactions nine months before and after the designation of Land Transaction Permission Zones for forest land areas of concern for planned real estate speculation in July last year, the number decreased by 32.7%, from 3,374 cases between November 2019 and July 2020 to 2,272 cases between August 2020 and April 2021.
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