Seoul City Lifts Non-Apartment Land Transaction Restrictions in Jamsil-dong Area
Apartment Sales Account for 90% of Transactions in Jamsil-dong... Residents Say Private Property Rights Violated
Seogangseok, Songpa District Mayor, Says "Residents' Situations Ignored, Full Lift Including Apartments Needed"
Songpa-gu (Mayor Seo Gang-seok) recently announced on the 23rd that it has requested Seoul City to ‘immediately reconsider’ the lifting of land transaction permit regulations for non-apartment properties in the Jamsil-dong area, including apartments.
On the 15th, Seoul City held an urban planning committee meeting and approved an adjustment plan limiting the land transaction permit target to apartments only for the entire 5.2 million㎡ area of Jamsil-dong. This decision follows the implementation of the amendment to the ‘Real Estate Transaction Report Act’ in October, which allows specifying and designating permit targets by applicant, building use, and land category.
Accordingly, from the 16th, non-apartment properties such as commercial buildings, houses, and officetels in the Jamsil-dong area were removed from the permit target.
However, in Jamsil-dong, over 90% of sales transactions are residents wishing to live in Jamsil-dong apartments. This decision effectively fails to resolve the fundamental issues faced by residents.
Residents of Jamsil-dong, who had hoped for a ‘complete lifting’ of restrictions due to Seoul City’s deregulation move, view this decision as a half-measure that disregards the local situation of Jamsil-dong, expressing disappointment and frustration, according to the district office.
Until now, the Jamsil-dong area has been designated as a permit zone at the legal neighborhood level, causing excessive infringement on private property rights and numerous complaints from residents. Songpa-gu was not included in the government’s ‘regulation area lifting’ announced in January this year, resulting in excessive overlapping regulations in Jamsil-dong. Compared to other areas, this is an ‘unfair disposition’ that excessively restricts even completed reconstruction complexes, and thus should be distinguished from the Gangnam case where reconstruction complexes with speculative overheating concerns were designated as land transaction permit zones, the district office explained.
For several years, apartment residents in Jamsil-dong have voiced their suffering due to infringement on property rights and freedom of residence relocation through joint petitions and submission of residents’ opinions centered on the residents’ representative council.
Accordingly, the district held a meeting with representatives of Jamsil-dong apartment residents on June 16, 2023, listened to residents’ voices regarding the re-designation, and continuously analyzed real estate market trends through transaction report processing analysis and monitoring of brokerage offices.
Based on this, on June 26, the district requested the immediate withdrawal of the re-designation and actively proposed a ‘complete lifting’ to Seoul City on September 14, responding in line with residents’ opinions.
At present, Jamsil-dong is judged by the district to be eligible for lifting the land transaction permit zone based on quantitative and qualitative grounds such as ▲declining land price fluctuation rate and transaction volume ▲suppression of speculative demand due to the announcement of the Jamsil MICE project development plan ▲decline in apartment prices and land price fluctuation rate ▲decrease in real estate transaction volume.
Seo Gang-seok, Mayor of Songpa-gu, stated, “The land transaction permit system should be applied restrictively only when there is a clear and existing risk in line with its basic purpose of eradicating speculative transactions. While we welcome the deregulation move, we request Seoul City’s immediate reconsideration to prevent further unfair situations for the majority of Jamsil-dong residents who quietly follow the policy.”
Meanwhile, the district plans to individually notify those whose land transaction permit obligations have been lifted due to this decision.
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