Continuous Monitoring of Real Estate Market Trends
Possible Designation of Adjustment Target Areas and Speculative Overheating Districts
Seoul City to Inspect Violations of Actual Residence Requirements in Land Transaction Permission Zones
As housing prices in Seoul, including the Gangnam 3 Districts, continue to rise, the government has left open the possibility of designating additional Land Transaction Permission Zones to curb speculative overheating.
Beomseok Kim, Acting Minister of Economy and Finance (First Vice Minister), is delivering opening remarks while presiding over the "16th Real Estate Market and Supply Situation Task Force (TF)" meeting held on the 23rd at the Government Seoul Office in Jongno-gu, Seoul. Ministry of Economy and Finance
On May 23, the government held the "16th Real Estate Market and Supply Situation Task Force (TF)" meeting at the Government Seoul Office in Jongno-gu, Seoul, co-chaired by Beomseok Kim, Acting Minister of Economy and Finance (First Vice Minister), and Hyunhwan Jin, First Vice Minister of Land, Infrastructure and Transport. In addition to the Ministry of Economy and Finance and the Ministry of Land, Infrastructure and Transport, officials from the Financial Services Commission, Seoul Metropolitan Government, Bank of Korea, and Financial Supervisory Service were also in attendance.
The participants noted that volatility in housing prices in Seoul, including areas such as Yongsan and the Gangnam 3 Districts, has recently increased slightly. They stated that they will continue to closely monitor real estate market trends. In addition, they said that, if necessary, they would consider implementing market stabilization measures such as additional designations of Adjustment Target Areas, Speculative Overheating Districts, and Land Transaction Permission Zones.
The government reviewed the implementation status and future plans of the "Measures to Expand Housing Supply for National Housing Stability" announced in August of last year, and stated that it would swiftly implement follow-up actions to expedite supply, including permits and groundbreakings, so that the results of housing supply become visible.
In the Seoul metropolitan area, the third-stage Stress Total Debt Service Ratio (DSR) will be implemented as previously announced, starting July 1, applying a 1.5% stress interest rate. The government plans to closely manage the supply of funds to ensure that they are provided mainly to genuine end-users, through regional household loan monitoring and voluntary management by financial institutions.
Since March, the Ministry of Land, Infrastructure and Transport and the Seoul Metropolitan Government have formed on-site inspection teams to review all reported transactions and conduct on-site inspections of real estate agencies. Upon detecting signs of price manipulation and collusion, the Seoul Metropolitan Government’s Civil Affairs Police Bureau has launched an investigation and is conducting a detailed probe. If illegal activities are confirmed as a result of this investigation, the authorities plan to respond strictly in accordance with a zero-tolerance policy.
Additionally, the Seoul Metropolitan Government, in cooperation with district offices, is inspecting whether the actual residence requirement for apartments subject to Land Transaction Permission is being violated, and will impose enforcement fines of up to 10% of the actual transaction price on violators.
The participants also agreed to continue closely monitoring housing market trends through the Real Estate Market and Supply Situation Task Force, and to maintain cooperation among relevant ministries and local governments to ensure sufficient housing supply and appropriate liquidity management.
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