The government is lifting many of the regulatory areas to prevent a hard landing in the housing market.
Except for the 3rd district of Gangnam and Yongsan-gu in Seoul, all areas are expected to be released into the regulated area.
According to the Presidential Office and government ministries, the Ministry of Land, Infrastructure and Transport will soon open a Housing Policy Deliberation Committee and lift additional regulatory areas.
The Ministry of Land, Transport and Maritime Affairs lifted a large number of regulatory areas in the metropolitan area, including Gyeonggi and Incheon, starting with the provinces last year.
If the area subject to adjustment is released, taxes will be reduced, such as comprehensive real estate tax and heavy capital gains tax being excluded, loans such as mortgage loan ratio (LTV) will be expanded, and subscription regulations such as re-winner restrictions will be lifted.
Currently, all of Seoul and four cities in Gyeonggi, including Gwacheon, Seongnam (Bundang and Sujeong-gu), Hanam, and Gwangmyeong, remain subject to adjustment and speculative overheating districts.
In addition, 15 areas in Seoul, including Yongsan, Seongdong, Nowon, Mapo, Yangcheon, Gangseo, Yeongdeungpo, Seocho, Gangnam, Songpa, Gangdong, Jongno, Jung-gu, Dongdaemun, and Dongjak-gu, are grouped as speculation areas.
This time, the government plans to lift the restrictions not only in the metropolitan area but also in many regulated areas in Seoul.
Seoul is also expected to be released from the regulated areas, except for Gangnam District 3, which is likely to increase house prices when deregulation is lifted, and Yongsan-gu, where there are favorable developments such as the relocation of the presidential office and the Yongsan International Business District.
In Nowon-gu, the decline in house prices over the past three months was 5.47%, more than twice the Seoul average, and Dobong-gu (-4.11%) also had the next largest decline.
Gangbuk-gu, Seongbuk-gu, Jungnang-gu, Geumcheon-gu, and Guro-gu are also falling by more than 2%.
A government official said, "The final decision will be made at the Housing Policy Deliberation Committee in which experts participate, but the extent of lifting will be considerably larger than expected by the market." .
Gangnam District 3 is currently experiencing a significant drop in house prices in Songpa-gu (-3.69%), but it is known that it will be excluded from the deregulation target.