Non-Regulated Areas Surge
Debate Over Appropriateness of Regulation
Kim Yoonduk, Minister of Land, Infrastructure and Transport, has suggested the possibility of expanding regulated areas, citing the recent surge in housing prices in non-regulated regions such as Hwaseong and Guri in Gyeonggi Province.
At the full meeting of the National Assembly’s Land, Infrastructure and Transport Committee on the 11th, Minister Kim responded to a question from Yeom Taeyoung, a member of the Democratic Party of Korea, who asked whether there were any plans to adjust regulated areas. Kim stated, “Currently, in places like Hwaseong and Guri, the so-called ‘balloon effect’ in real estate prices is reaching a concerning level,” and added, “We need to consider expanding the regulated areas in some cases.”
However, Minister Kim also emphasized, “Nothing has been decided yet. We are considering government policies in response to market conditions,” and added, “It is also necessary for the government to provide sufficient explanations so that the public does not misunderstand.”
Kim Yoonduk, Minister of Land, Infrastructure and Transport, is giving a proposal explanation related to the 2026 budget at the full meeting of the Land, Infrastructure and Transport Committee held at the National Assembly in Yeouido, Seoul on the 11th. Photo by Yonhap News
Hwaseong and Guri See Highest Price Increases in 61 and 279 Weeks
According to the Korea Real Estate Board, as of the first week of this month (based on November 3), apartment prices in Hwaseong and Guri rose by 0.26% and 0.52%, respectively. This marks a significant increase compared to the previous week. Hwaseong recorded its highest weekly increase in 61 weeks since the fourth week of August last year, while Guri saw its highest in 279 weeks since the fourth week of June 2020. The ‘balloon effect’ in some non-regulated areas of Gyeonggi Province has become particularly evident.
Since the October 15 measures, transactions have also increased. According to an analysis by real estate platform Zigbang of the Ministry of Land, Infrastructure and Transport’s actual transaction price disclosure system, the number of apartment sales in non-regulated areas of the Seoul metropolitan area reached 6,292 in the 20 days after the announcement (October 16 to November 4), up 22% from 5,170 in the 20 days before the announcement (September 25 to October 14). In Gwonseon-gu, the only remaining non-regulated area in Suwon, transactions increased by 73% (from 143 to 247), marking the highest growth rate among non-regulated areas in the metropolitan area.
This was followed by Hwaseong, home to Dongtan New Town, with a 59% increase; Paju and Guri, which have good access to Seoul via the GTX and Line 8 subway stations, with increases of 41% each; Gunpo with 34%; and Wonmi-gu in Bucheon with 25%.
“Not Illegal”... Minister Kim Refutes Opposition’s ‘Data Manipulation’ Claims
Minister Kim strongly refuted allegations of illegality in the process of implementing the October 15 measures. When Kim Heejeong, a member of the People Power Party, pressed, “Regulated areas should be designated as narrowly as possible. Did you fulfill your duty?” Minister Kim replied, “We did our best.” When Kim Eunhye, also of the People Power Party, claimed, “The process of implementing the October 15 measures was illegal,” Minister Kim responded, “If there was any illegality, I would accept punishment, but it is not convincing to keep insisting there was illegality when that is not the case.”
Previously, through the October 15 measures, the government designated all of Seoul and 12 locations in Gyeonggi Province as regulated areas, speculative overheating districts, or land transaction permit zones. The opposition later raised suspicions that the government might have excluded September statistics to avoid including regions that would otherwise not meet the criteria due to higher inflation rates if July to September data were used as the benchmark. They claimed the government expanded the regulated areas based on June to August statistics instead.
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