It was revealed that the government unilaterally notified the Seoul Metropolitan Government when it designated all of Seoul and 12 locations in Gyeonggi as land transaction permit zones (land permit zones) through the Oct. 15 real estate measures.
Oh Se-hoon, the Seoul mayor, attended the Land Infrastructure and Transport Committee's parliamentary audit held at Seoul City Hall on Oct. 20 and said, "I received a unilateral notice from the Ministry of Land, Infrastructure and Transport before the designation of the land transaction permit zone."
Mayor Oh said that before the designation of speculative overheating zones and adjustment target areas across Seoul, there was a process of collecting written opinions from the Ministry of Land, Infrastructure and Transport on the 13th, two days before the announcement, but even though he offered the view that "caution is advisable" at that time, it was ignored.
Rep. Kim Hee-jung of the People Power Party asked Mayor Oh during the Land Infrastructure and Transport Committee's parliamentary audit held at City Hall on Oct. 20, "Before announcing real estate regulations, it is only natural to hear Seoul's opinion. Regarding the regulatory designation, was there any exchange of opinions at the working level or among the officials?"
Oh answered, "Regarding the issue of designating speculative overheating zones and adjustment target areas, the ministry sought our opinion in writing two days before the announcement, and we sent a reply that 'it is desirable to be prudent.'"
The Seoul city response document presented by Rep. Kim contains the phrase, "A prudent decision is necessary. Because end users' opportunities to purchase dwellings will shrink and anxiety among non-homeowning low-income citizens will increase, a prudent decision is necessary."
Oh added, "Before designating the land permit zone, I effectively received a unilateral notice via a phone call right before the announcement."
Regarding the latest announcement, Oh also said, "At first, I think it could significantly suppress demand and stabilize prices," but added, "If the current measures continue in the long term, it will be hard to buy apartments, hard to sell them, and I worry it will be difficult to secure jeonse and monthly rental supply right away."
Oh also expressed the view that a private sector–centered dwellings supply policy needs to be revitalized. He said, "Analyzing the volume of dwellings supplied so far, more than 90% has been provided by the private sector. To secure sufficient volume for stabilizing the real estate market, I believe securing it in the private market is the shortcut."
He went on to say, "I believe the most urgent way is to create a market atmosphere that allows profits (through redevelopment projects) so that supply volumes are delivered."