Daechi-dong Gaepo Woosung and Eunma, Jamsil Woosung 1, 2, 3, 4 Complexes Maintain Land Transaction Permission Zones
Apgujeong, Yeouido, Mokdong, and Seongsu Reconstruction Complexes to Pursue Removal After Management Disposition Plan Approval
Seoul City: "Will Consider Re-designation if Overheating Occurs"
The areas around Jamsil, Samsung, Daechi, and Cheongdam-dong in Seoul will be removed from the land transaction permission zones for the first time in five years. Fourteen early-stage reconstruction apartments that have passed safety inspections, such as Jamsil Jugong Complex 5 and Daechi-dong Eunma Apartments, will maintain their current status. Reconstruction and redevelopment complexes in Apgujeong, Yeouido, Mokdong, and Seongsu-dong, which have speculation concerns, the 14 rapid integrated planning sites within the speculative overheating zones (Gangnam 3 districts and Yongsan district), and public redevelopment project sites will also retain their current designations.
On the 12th, the Seoul Metropolitan Government announced that it will proceed with lifting the land transaction permission zones in areas with low speculation concerns. On the same day, the city held an urban planning committee meeting and approved the adjustment plan for the 'land transaction permission zones.' The adjustment plan will take effect immediately after being announced on the 13th.
Jo Nam-jun, Director of the Urban Space Headquarters of Seoul City, explained, "There were many fairness controversies with other regions regarding apartments without reconstruction issues in the International Exchange Complex area, and there were also criticisms about why Banpo was excluded. We are adjusting the overly and unreasonably designated areas, and we set a principle to continue managing areas with reconstruction discussions because lifting the designation there could attract speculative demand such as gap investments."
Daechi-dong Gaepo Woosung and Eunma, Jamsil Woosung 1, 2, 3, 4 Complexes Maintain Land Transaction Permission Zones
The areas removed from the land transaction permission zones this time are 291 out of 305 apartment complexes located in four neighborhoods near the International Exchange Complex (Jamsil-dong in Songpa-gu, Samsung, Daechi, and Cheongdam-dong in Gangnam-gu). Fourteen reconstruction-promoting apartments that passed safety inspections will maintain their land transaction permission zone designation. The city decided to maintain the designation due to the possibility of speculative overheating caused by buyers waiting for reconstruction expectations.
The 14 complexes maintaining their designation are ▲ Gaepo Woosung 1 and 2, Seon-gyeong, Mido, Ssangyong 1 and 2, Woosung 1, Eunma Apartments in Daechi-dong, Gangnam-gu ▲ Jinheung Apartments in Samsung-dong ▲ Hyundai 1st Complex in Cheongdam-dong ▲ Jamsil Jugong Complex 5, Woosung 1, 2, 3, 4, and Asia Athletes' Village in Songpa-gu.
Among 123 rapid integrated planning reconstruction and redevelopment project sites, six sites that have completed the designation of maintenance zones and approval of association establishment will also be immediately removed from the designation. These sites are in Sindang-dong 236-100 area, Myeonmok-dong 69-14 area, Sinjeong-dong 1152 area, Banghwa-dong 589-13 area, Cheonho-dong 167-67 area, and Mia-dong 8-373 area (Mia 4-1).
Ap-Yeo-Mok-Seong Reconstruction Complexes to Pursue Removal After Management Disposition Plan Approval
The major reconstruction and redevelopment zones in Apgujeong, Yeouido, Mokdong, and Seongsu, the 14 rapid integrated planning sites in the Gangnam 3 districts and Yongsan district, and three public redevelopment sites will maintain their land transaction permission zone status. For these areas, the city plans to discuss lifting the designation through a comprehensive evaluation when the risk of speculation is judged to be low after the management disposition plan approval.
The 14 reconstruction apartments near the International Exchange Complex will also be managed similarly, with the decision on lifting the designation made after management disposition plan approval. The city considers that after the approval, the application for association member allocation ends, finalizing rights relations, thus reducing speculation risk.
For rapid integrated planning reconstruction and redevelopment project sites, the decision on lifting the designation will be made after the approval of association establishment. The city plans to sequentially lift the land transaction permission zones designated for a total of 59 sites by 2027, depending on whether association establishment approval is granted. It is expected that four sites will receive approval by the end of this year, 39 sites in 2026, and 10 sites in 2027.
Jonamjun, Head of the Urban Space Headquarters of Seoul City, is answering reporters' questions regarding the lifting of the land transaction permit zone. Photo by Lee Jung-yoon
Seoul City: "Will Consider Re-designation if Overheating Occurs"
Since Mayor Oh Se-hoon announced plans to review lifting the land transaction permission zones last month, there have been short-term price increases, especially in apartments around Jamsil and Daechi-dong. The city stated that it will comprehensively assess future price trends and consider re-designation if overheating occurs.
Director Jo said, "We plan to comprehensively review and judge based on the rate of increase in real estate prices and transaction trends. We have a principle that real estate transactions should largely stabilize downward."
There are criticisms that setting the lifting of the land transaction permission zone at the time of association establishment approval for rapid integrated planning zones is unfair compared to the timing for reconstruction-promoting apartment complexes.
Regarding this, Director Jo explained, "Although various projects are being promoted related to rapid integrated planning, there are still many areas where associations have not been formed. Proper turnover is necessary for the project to gain momentum, and some elderly residents want to move elsewhere after selling their real estate, but these aspects are restricted, so we want to judge separately."
The land transaction permission system is a system that requires prior approval from the district office head when trading housing, commercial buildings, or land above a certain scale in development (planned) areas and areas with speculation concerns to prevent speculative transactions. For housing, only sales for actual residence purposes are allowed for two years, and so-called 'gap investments,' where buyers purchase homes with jeonse (long-term deposit lease), are not permitted.
The city has boldly eased regulations by shifting from the previous method of broadly designating land transaction permission zones to selectively designating only some areas with speculation concerns. There have been many complaints that the broad designation of land transaction permission zones or repeated annual re-designations of already developed apartments infringe on freedom of residence relocation and property rights. Since August last year, Seoul City has conducted research to verify the effectiveness of the land transaction permission zone designation system, finding that while real estate transaction volumes decreased and prices stabilized in the short term, the effect diminished over time.
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