From 0 a.m. on the 24th, the three districts of Gangnam (Gangnam, Seocho, Songpa) and Yongsan will be designated as land transaction permitting areas. This is the first time that a district unit, rather than a specific area or neighborhood, has been designated as a land transaction permitting area to prevent soaring house prices.
The land transaction permitting system (LTP) requires local government heads to approve transactions of real estate to prevent speculation. Within the land transaction permitting area, dwellings can only be sold for the purpose of actual residence for two years, and purchasing a home with leasehold rights through a 'gap investment' is not allowed.
The targets that require permission during land transaction contracts include 2,200 apartment complexes in the three districts of Gangnam and Yongsan. Approximately 400,000 households will need to seek permission when trading. The total area is 110.65㎢.
When trading apartments with an area of 6㎡ or more (based on residential areas), permission from the district mayor is required. Only actual residents who will occupy the property for over two years are allowed to purchase. Furthermore, all household members must be non-homeowners or must sell their existing home entirely within one year, effectively allowing only non-homeowners to buy apartments.
With the implementation of these regulations, the three districts of Gangnam and Yongsan will be subject to a total of three regulations: existing speculative overheating zones, adjustment target areas, and land transaction permitting areas.
Combining the newly designated areas with existing land transaction permitting areas such as Apgujeong, Yeouido, Mokdong, and Seongsu-dong, approximately 27% (163.96㎢) of the total area of Seoul (605.24㎢) is now bound by the land transaction permitting system.
The government and Seoul City plan to apply the land transaction permitting system until September and will actively consider extending the period depending on the situation. Additionally, if there is a 'balloon effect' where demand shifts to surrounding areas like Mapo, Seongdong, and Gangdong, causing house prices to rise, there are plans to designate additional land transaction permitting areas.