Extension of Land Transaction Permission Zone for 8 Public Redevelopment Candidate Sites by 1 Year
[Asia Economy Reporter Kim Min-young] Seoul City will designate seven areas selected as targets for the Rapid Integrated Planning (SinTong Planning) such as Songpa Jangmi, Hanyang 2nd, and Godeok Hyundai as land transaction permission zones within this month. This is interpreted as an intention to preemptively block concerns that the recently halted rise in Seoul housing prices might be stirred up due to redevelopment projects.
On the 20th, Seoul City announced that seven housing reconstruction and redevelopment project sites, which were decided as SinTong Planning targets in the second half of last year, will also be designated as land transaction permission zones within this month.
The newly designated areas include △ Sindang-dong 236-100 area (housing maintenance-type redevelopment) △ Sinjeong-dong 1152 area (housing maintenance-type redevelopment) △ Guro Wooshin Villa (reconstruction) △ Songpa Jangmi 1st, 2nd, 3rd complexes (reconstruction) △ Songpa Hanyang 2nd (reconstruction) △ Godeok Hyundai (reconstruction) △ Mia 4-1 (detached house reconstruction), etc. SinTong Planning, known as the "Oh Se-hoon style redevelopment project," is a Seoul City initiative that simplifies administrative procedures to accelerate project progress compared to existing redevelopment projects, generating strong enthusiasm centered on prime complexes such as Yeouido and Gangnam. However, there have been criticisms that the demand for apartments in Gangnam area, where SinTong Planning reconstruction complexes are concentrated, and villas in SinTong Planning redevelopment candidate sites, is driving up housing prices.
According to the Ministry of Land, Infrastructure and Transport's Real Transaction Price Disclosure System, a 128㎡ unit in Hanbo Mido Mansion (Daechi Mido) in Daechi-dong, Gangnam-gu, was traded for 4.14 billion KRW (10th floor) in November last year. This was 500 million KRW higher than the previous record price of 3.65 billion KRW (12th floor). As record prices surged mainly in SinTong Planning target sites and candidates, Seoul City designated Yeouido Shibeom, Hanyang, and Daechi Mido, selected as SinTong Planning targets last December, as land transaction permission zones. When designated as a land transaction permission zone, ownership or superficies rights of houses, commercial buildings, land, etc., require permission from the district office head to conclude transaction contracts. If a contract is concluded without permission, penalties include imprisonment for up to two years or fines up to 30% of the land price.
Ham Young-jik, head of Zigbang Big Data Lab, said, "Designating land transaction permission zones effectively prevents speculative demand and blocks speculative real estate transactions in selected complexes and candidate sites," adding, "It is a preemptive measure to prevent share splitting aimed at future development profits."
Along with this, Seoul City decided to re-designate the following as land transaction permission zones on the same day: ▲ Jongno-gu Sinmunro 2-12 district ▲ Dongdaemun-gu Sinseol 1 district and Yongdu 1-6 district ▲ Gangbuk-gu Gangbuk 5 district ▲ Yeongdeungpo-gu Yangpyeong 13 district and Yangpyeong 14 district ▲ Dongjak-gu Heukseok 2 district ▲ Gwanak-gu Bongcheon 13 district. The designation period is from the 26th of this month to January 25th of next year.
A Seoul City official explained, "Considering the possibility of real estate overheating due to public redevelopment projects, the purpose of public development, location, and price increases comprehensively, we decided to extend the designation for one year."
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