All areas except Seoul, Gwacheon, Seongnam (Bundang, Sujeong), Hanam, and Gwangmyeong will be lifted from the real estate regulated area.
All of Gyeonggi-do, Incheon, and Sejong will be released from regulated areas, leaving only four regions in the country.
On the morning of the 10th, the government announced the release of additional regulated areas at the 3rd real estate-related ministerial meeting presided over by Choo Kyung-ho, Deputy Prime Minister of Economy and Minister of Strategy and Finance on the morning of the 10th.
Prior to the meeting, the Ministry of Land, Infrastructure and Transport held the 4th Housing Policy Deliberation Committee yesterday to deliberate and decide on the 'Adjustment Plan for Overheated Speculation Zones and Areas Subject to Adjustment'.
Last September, the government lifted all regulatory areas in provinces except for Sejong.
As for the regulated areas, 15 speculation areas (Seoul), 39 overheated speculation areas (Seoul/Gyeonggi), and 60 areas subject to adjustment remained.
As the real estate market cooled due to high interest rates, it was the first time in two months to lift the regulation area.
The government has lifted nine districts in Gyeonggi Province from speculation overheating districts.
Suwon, Anyang, Ansan Danwon, Guri, Gunpo, Uiwang, Yongin Suji/Giheung, and Dongtan 2-ga are covered.
In the areas subject to adjustment, 22 locations in Gyeonggi-do, including Goyang, Namyangju, Gimpo, Uiwang, Ansan, and Gwanggyo districts, as well as the entire Incheon area (8 locations) and Sejong, were lifted.
Accordingly, all of Seoul and only Gwacheon, Seongnam (Bundang, Sujeong), Hanam, and Gwangmyeong remain as double regulation areas, including the speculative overheating district and the adjustment target area.
The Housing Policy Deliberation Committee determined that Seoul needs to be maintained as an overheated speculation district and a target area for adjustment in consideration of the ripple effect, development demand, and high housing demand in the surrounding area.
Because Gyeonggi-do is close to Seoul, so housing prices and development demand are high, it was decided to maintain Gwacheon, Seongnam (Bundang, Sujeong), Hanam, and Gwangmyeong, which were designated as regulated areas at the same time as Seoul, as overheated speculation and regulation areas.
First Vice Minister of Land, Infrastructure and Transport Lee Won-jae said, "We have preemptively lifted the regulated areas in consideration of the recent housing market situation in the metropolitan area."
The release of the regulated area will take effect at 00:00 on the 14th when the publication of the Official Gazette is completed.
When it is lifted from the regulated area, regulations related to the entire process of buying and selling a house, such as loans, taxation, subscription, and transactions (restriction on resale), will be greatly eased.
If the speculative overheating district is lifted, mortgage loans are allowed for houses with more than 1.5 billion won, and the mortgage loan ratio (LTV) will be eased by 10 percentage points, 50% for houses under 900 million won and 30% for more than 900 million won is applied.
The period of restriction on the resale of housing rights will be reduced from a maximum of 5 years to 3 years, and the period of re-winning of the subscription will be reduced from 10 years to 7 years.
When the adjustment target area is lifted, the 50% LTV regulation will be relaxed to 70%, and multi-family homeowners will be allowed to take out mortgage loans.
Under the new government, the government lifted the regulated areas twice in June and September.
In September, the second, significant deregulation was carried out in all regions except for Sejong and in the metropolitan area, including some of the areas outside Gyeonggi-do.
As apartment prices fell for several months in the wake of a transaction cliff in the wake of the interest rate hike, 8 local governments in Incheon and the remaining regulated areas such as Yongin, Uiwang, Namyangju, Gimpo, and Uijeongbu have suggested lifting the restrictions.