Gyeonggi Province has designated 17.28㎢ of the ‘1st Generation New Town Pilot Planned District’ as a land transaction permission zone for six months until December 31 of this year.
Gyeonggi Province explained that last month, it held a progress inspection meeting on the pilot district with the Ministry of Land, Infrastructure and Transport, Seongnam City, Goyang City, Anyang City, Gunpo City, and Bucheon City, and designated these areas as land transaction permission zones to block speculative inflows.
The areas designated as land transaction permission zones are ▲4.48㎢ in Ilsandong-gu, Goyang City ▲6.45㎢ in Bundang-gu, Seongnam City ▲2.11㎢ in Dongan-gu, Anyang City ▲2.03㎢ in Sanbon-dong, Gunpo City ▲2.21㎢ in Wonmi-gu, Bucheon City.
To trade land (excluding residential use) in these areas, one must obtain permission from the competent mayor before signing a sales contract.
If a contract is made without permission or permission is obtained through fraudulent means, imprisonment for up to two years or a fine of up to 20 million KRW will be imposed. If permission is granted, the land must be used for the approved purpose for a certain period, and if violated, a performance penalty of up to 10% of the acquisition price may be imposed annually.
In May, Gyeonggi Province, in consultation with the Ministry of Land, Infrastructure and Transport, Seongnam City, Goyang City, Anyang City, Gunpo City, and Bucheon City, selected 26,000 housing units as the ‘pilot district’ for the first to undergo reconstruction among the 1st Generation New Town apartment complexes. In June, guidelines for the pilot district contest were announced.
The total 26,000 units correspond to 10% of the entire 260,000 units in the 1st Generation New Towns. The allocation by the five cities is 8,000 units in Bundang, 6,000 units in Ilsan, and 4,000 units each in Pyeongchon, Jungdong, and Sanbon. The specific complexes to be prioritized will be finally decided in November through contests held by each local government.
The pilot district is the area that will first proceed with the reconstruction project of aging planned cities under the ‘Special Act on the Maintenance and Support of Aging Planned Cities’ enacted last December.
The subsequent schedule for specific district designation includes submission of pilot district selection proposals in September, evaluation and consultation with the Ministry of Land, Infrastructure and Transport in October, and final selection in November. The pilot district selection will be conducted by local governments based on evaluation criteria reflecting local conditions such as resident consent rates, urgency of residential environment improvement, and ripple effects of redevelopment projects for each 1st Generation New Town.
Lee Gye-sam, Director of the Urban Housing Office of Gyeonggi Province, said, "We will actively respond to block real estate speculation such as splitting commercial properties to ensure smooth and successful promotion of the 1st Generation New Town pilot districts," adding, "We hope that the redevelopment projects of aging planned cities starting with the pilot districts will create spaces for residents’ life-centered reconstruction and establish a new urban paradigm including the introduction of RE100."
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