Songpa-gu Proposes Full Removal of Land Transaction Permission Zone in Jamsil-dong

To Protect Residents' Property Rights... Continuous Requests to Seoul City for Lifting the Land Transaction Permission Zone in Jamsil-dong

Average Official Apartment Price in Jamsil-dong Drops by 30% in 2023

Complaints on Private Property Rights Violations Surge Due to Maintenance of Land Transaction Permission Zones and Regulatory Areas

Songpa-gu (Mayor Seo Gang-seok) announced on the 26th that it has submitted an opinion to Seoul City to fully lift the land transaction permission zone in Jamsil-dong to protect the property rights of local residents.

The area of Jamsil-dong, covering 5.2 million square meters, has been designated as a land transaction permission zone from June 23, 2020, to June 22 of this year. It has been extended twice since its initial designation, and the decision on re-designation is scheduled for June.

Seo Gang-seok, Mayor of Songpa-gu, stated, “Songpa-gu was not included in the government's 'Regulatory Area Lift' announced in January 2023, so it remains a regulatory area. Jamsil-dong is also designated as a land transaction permission zone, imposing excessive regulations on residents' property rights. Especially, the overlapping regulations increase the burden on actual buyers, so lifting the land transaction permission zone in Jamsil-dong is absolutely necessary.”

Seogang-seok, Mayor of Songpa District

The district explained that land transaction permission zones are designated for areas where speculative land transactions and rapid land price increases are a concern, but Jamsil-dong does not meet the designation criteria as both land price change rates and transaction volumes have been declining, showing stability.

In particular, Jamsil-dong was designated to suppress speculative demand as it is the target area for the International Exchange Complex District (Jamsil MICE project), but with the development plan announced at this point, the practical benefits of the designation have disappeared.

Also, according to the official apartment price (draft) as of January 1, 2023, large apartment complexes in Jamsil-dong (based on 84㎡) have dropped about 30% compared to the previous year, and the land price change rate is -0.049%, showing a downward trend compared to last year's land price change rate of 0.392%.

Analysis of transaction report processing data through the real estate transaction management system shows that the real estate transaction volume in Jamsil-dong in 2022 decreased by about 66.32% compared to before the designation of the permission zone in 2019 (2019: 2,705 cases, 2022: 911 cases), and transaction prices also declined.

Furthermore, it emphasized that complaints demanding lifting the designation are rapidly increasing as residents face significant infringements on their private property rights, unable to sell their real estate in a timely manner when they must dispose of it due to unavoidable reasons.

Seo Gang-seok, Mayor of Songpa-gu, said, “Real estate transaction volumes in all land transaction permission zones designated in our district, including Jamsil-dong, have sharply decreased, and current official apartment prices are also showing a downward trend compared to the previous year. To protect the property rights of local residents, the designation of the land transaction permission zone in Jamsil-dong must be lifted.”