Samsung, Cheongdam, Daechi, and Jamsil Land Transaction Permission Zones Extended for 1 More Year

Approved by Seoul City Dokaewi on the 7th... Until June 22, next year
"An unavoidable measure to prevent overheating of the real estate market"

The designation period for land transaction permission zones in Daechi, Cheongdam, and Samseong-dong in Gangnam-gu, Seoul, as well as Jamsil-dong in Songpa-gu, has been extended by one year.

Aerial View of Jamsil MICE Complex Space

On the 7th, the Seoul Metropolitan Government held an urban planning committee meeting and approved the re-designation plan for the land transaction permission zones in Daechi, Cheongdam, Samseong, and Jamsil-dong near the International Exchange Complex District. As a result, these four neighborhoods will remain land transaction permission zones until June 22 of next year.

The land transaction permission zone system requires obtaining permission from the mayor or district office head when trading land above a certain area. Transactions can only be conducted for actual residence purposes, making gap investments, such as sales with existing leases, impossible.

A Seoul city official explained, "This is an unavoidable measure to prevent overheating in the real estate market."

The Daechi, Cheongdam, Samseong, and Jamsil-dong areas are sites of large-scale development projects related to the International Exchange Complex District. The International Exchange Complex District is a project to create a MICE (Meetings, Incentives, Conferences, and Exhibitions) hub linking four core industry facilities (international business, sports, entertainment, exhibition and convention) and waterfront spaces across 1.66 million square meters stretching from COEX to Hyundai Motor GBC (formerly KEPCO site) to Jamsil Sports Complex.

Seoul city tied this area under the land transaction permission system in June 2020 due to concerns about speculative demand inflow. The designation period has since been extended twice and was set to expire on the 22nd.

Residents have demanded the lifting of the land transaction permission zone, citing "infringement of property rights." Yook Kyung-jun, a member of the People Power Party representing Gangnam, recently delivered a petition signed by about 5,500 residents to Seoul Mayor Oh Se-hoon requesting the lifting of the designation.

However, Seoul city judged that lifting the permission zone could lead to rapid land price increases and an influx of speculative forces.

A senior Seoul city official explained, "The extension of the land transaction permission zone despite residents' demands is understood as a result of considering the recent continuous rise in housing prices and fairness with other land transaction permission zones such as Apgujeong, Yeouido, Seongsu, and Mokdong."