Review of Lifting Restrictions for Areas in Gangbuk District Excluded from Rapid Integrated Planning
Seoul City is considering lifting the designation of land transaction permission zones for commercial and office real estate in areas such as Cheongdam, Samsung, and Daechi-dong in Gangnam-gu, and Jamsil-dong in Songpa-gu. Additionally, land transaction permission zones in northern Seoul that were not selected for the Rapid Integrated Planning and Public Redevelopment Project contests are also likely to be deregulated.
On the 14th, Seoul City released an explanatory document stating, "With the enforcement of the 'Real Estate Transaction Report Act' on October 19, we are considering excluding commercial and office uses other than apartment uses among building purposes," and added, "A final decision is expected after review by the Seoul City Urban Planning Committee within this week." The city is examining quantitative indicators and transaction volumes as adjustment conditions to lift the designation of land transaction permission zones.
The land transaction permission zone system requires obtaining permission from the head of the local government when trading real estate above a certain scale. It was introduced in 2020 to stabilize the real estate market. However, the current land transaction permission zones have restricted transactions of commercial and office real estate regardless of the system's original purpose of 'housing stability for actual demanders,' leading to controversies over infringement of property rights.
In particular, the land transaction permission zones related to the International Exchange Complex District cover entire legal neighborhoods, resulting in stricter regulations. To purchase commercial buildings or offices located in Samsung, Cheongdam, Daechi, and Jamsil-dong, one must fulfill the obligation of 'self-management.' For example, when purchasing a small building, at least one floor must be used for actual business. Currently, the most likely plan is to exclude only commercial and office real estate in these areas from the land transaction permission requirements.
Along with this, Seoul City added, "We are also considering lifting the designation of land transaction permission zones for areas not selected in the Rapid Integrated Planning (redevelopment) and Public Redevelopment Project contests to alleviate residents' inconveniences caused by prolonged non-selection." It appears that the lifting of land transaction permission zone designations will be reviewed for areas such as Jongno-gu, Jung-gu, Dongdaemun-gu, Gangbuk-gu, Nowon-gu, Jungnang-gu, Gwangjin-gu, and Yongsan-gu that were not selected for redevelopment projects.
However, to prevent overheating of the real estate market, the areas under consideration this time will apply only to commercial and office facilities, excluding apartments.
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