The designation of overheated speculative districts in Daegu, Daejeon, and Gyeongnam areas with relatively low increase in house prices and a marked increase in unsold housing will be lifted.



In addition, regulations on areas subject to adjustment will also be lifted for all areas of Daegu except Suseong-gu, 11 cities, counties, etc.



The Ministry of Land, Infrastructure and Transport announced today (30th) that the second housing policy review committee was held this year at the government complex in Seoul and decided to adjust the regulatory areas for these areas from the 5th of next month.



There are a total of six areas to be lifted from the speculative overheating district: Suseong-gu, Daegu, Dong-gu, Jung-gu, Seo-gu, Yuseong-gu, and Uichang-gu, Changwon, Gyeongnam.



With this, all regions except Sejong City will be released from the speculative overheating district.



Sejong decided to maintain the current regulations as it was judged that although housing prices have continued to decline recently, the competition rate for subscription is still high and the potential buying trend is maintained.



The 11 areas that will be released from the adjustment target areas are Daegu, Dong-gu, Seo-gu, Nam-gu, Buk-gu, Jung-gu, Dalseo-gu, and Dalseong-gun;



In the case of Daegu, only Suseong-gu will remain as an area subject to adjustment, and restrictions will be lifted for all other areas.



In the metropolitan area, only some island areas such as Daebudo, Pungdo, and Jebudo were subject to deregulation.



Specifically, Daebu-dong, Daebunam-dong, Daebubuk-dong, Seongam-dong, and Pungdo-dong, Danwon-gu, Ansan-si, Gyeonggi-do were lifted from the speculation overheating district and the adjustment target area at the same time.



With today's decision, the speculative overheating districts will be reduced from 49 to 43, and the areas subject to adjustment will be reduced from 112 to 101, respectively.



Previously, local governments such as Nam-gu in Ulsan, Yangju, Paju, Gimpo in Gyeonggi-do, Cheongju in North Chungcheong, and Jeonju in Jeonbuk requested the Ministry of Land, Infrastructure and Transport to cancel the area subject to adjustment, but most of them were not accepted except for Daegu.



If it is designated as a regulated area, it is subject to a wide range of regulations such as loans, taxes, and subscriptions.



In the area subject to adjustment, loan regulations are in effect, such as 50% of the mortgage loan ratio (LTV) of less than KRW 900 million and 30% of the portion exceeding KRW 900 million, and 50% of the total debt service ratio (DTI). The burden of various taxes, such as capital gains tax and comprehensive real estate tax, also increases.



In the overheated speculative district, stronger loan regulations are applied, such as 40% for LTV of less than 900 million won and 20% for more than 900 million won, and the level of regulation on maintenance projects such as reconstruction increases.



The Ministry of Land, Infrastructure and Transport plans to closely monitor the housing market situation by region in the second half of the year and, if necessary, additionally consider lifting restrictions in areas where house prices show a downward and stable trend even before the end of the year.



Minister of Land, Infrastructure and Transport Won Hee-ryong met with reporters and said, "I think we need to loosen the regulations due to the recent situation such as interest rate hikes and the problem of accumulating unsold homes. will have to go,” he said.