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, all areas of Daegu except Suseong-gu, Gyeongsan, Gyeongsangbuk-do, and Yeosu-si, Jeollanam-do, are also subject to adjustment.
Some island areas in Ansan-si and Hwaseong-si, Gyeonggi-do are also lifted from the target area, but regulations on other areas in these cities are maintained.
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.
With this decision, the number of overheated speculation districts was reduced from 49 to 43, and the area subject to adjustment was reduced from 112 to 101, respectively.
Although the regulated areas at the city, county, and gu level were not lifted, some island areas in the metropolitan area, 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 are simultaneously lifted from the speculation overheating district and the adjustment target area, and the regulation target area regulation for the nearby Seosin-myeon (Jebudo) of Hwaseong-si will also be lifted.
The Ministry of Land, Infrastructure and Transport explained that in the case of the metropolitan area, house prices have continued to rise or have recently turned to a decline, and there are still many unsold homes, so they decided to maintain the regulated area for the time being and monitor the market situation.
However, in the process of designating regulated areas by city, county, and gu units in the past, it was added that some areas of Ansan and Hwaseong, which were designated as regulated areas, were to be lifted even though there were no apartments in the island area.
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 were applied, 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 today 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 houses. We will have to go step by step taking that into account.”