Anger is building among residents in outer Seoul areas such as "Nodogang (Nowon, Dobong, and Gangbuk districts)" over the Oct. 15 real estate measures that designated all of Seoul as a land transaction permit zone. Residents in these areas are escalating their pushback, following up banner protests with a planned large rally to demand the withdrawal of the land transaction permit designation.
According to the industry on the 21st, the Nowon Future City Maintenance Project Promotion Group, made up of about 1,500 Nowon-gu residents, will hold a rally at 2 p.m. on the 22nd in front of the Lotte Department Store in Sanggye-dong, Nowon-gu, calling for the abolition of the land transaction permit system. Since the Oct. 15 measures were announced, the Nowon Future City Maintenance Project Promotion Group has been voicing opposition by putting up about 200 banners around the district with phrases such as "Trying to rein in Gangnam is bringing down Nowon."
Also, on the 19th, at its first plenary session, the Dobong District Council adopted a resolution urging a full reexamination of the "dwellings market stabilization measures" (so-called Oct. 15 real estate measures), proposed by Councilor Kang Sin-man and seven others. Of the 14 councilors, nine supported the resolution, including two from the Democratic Party of Korea. The resolution includes ▲ an immediate reexamination of the blanket regulations across Seoul ▲ measures to protect end users ▲ easing administrative burdens on basic local governments ▲ formation of a "Dobong and northeastern residential stability council" with participation from Dobong-gu, the Seoul Metropolitan Government, and the central government. The Dobong District Council plans to deliver the resolution to the government and City Hall.
The backlash in Nodogang is particularly intense because, despite a downward trend in home prices there, the government applied the same "triple regulations" as in Gangnam. According to the Korea Real Estate Board (KREB) nationwide dwelling price trend survey, apartment prices in Seoul's Dobong-gu fell 5.33% over about two years and nine months from the end of 2022 to September this year. Over the same period, apartment prices in Gangbuk-gu and Nowon-gu also fell 3.21% and 0.98%, respectively.
There is also considerable frustration that the new regulations will inevitably delay redevelopment and reconstruction projects that had just gained momentum, causing significant damage. If projects are delayed, construction, demolition, and design costs increase, raising the additional assessments that association members must pay. It is also not easy to sell pre-sale rights. In speculative overheating districts, transfers of association member status are restricted—after approval for association establishment in reconstruction, and after approval of the management and disposal plan in redevelopment. In addition, in speculative overheating districts, the number of dwellings per reconstruction association member is limited to one, and members cannot receive association-member or general subscriptions in other maintenance projects for five years, so reconstruction owners with two or more dwellings can be "cashed out."
Koh Jun-seok, a professor at the Sangnam Institute of Management, Yonsei University, said, "Nodogang is an area where maintenance projects are just getting started, and with loan regulations and restrictions on transferring association member status, it is difficult for projects to gain speed," adding, "For those who have trouble raising additional assessments, it seems necessary to establish an exception that would allow them to sell their pre-sale rights so projects can proceed faster."
Meanwhile, unlike in the early days after the Oct. 15 measures were announced, home prices are rising even in Nodogang, making the "balloon effect" clear. According to the Korea Real Estate Board (KREB), apartment sale prices in Nowon-gu in the third week of November rose 0.06% from the previous week, the biggest increase since the measures were announced. Dobong-gu and Gangbuk-gu also rose 0.05% and 0.02%, respectively, widening the gains. Professor Koh said, "In Nodogang and Geumgwang-gu (Geumcheon, Gwanak, and Guro districts), many apartments are priced at 1.5 billion won or less, so buyers can get loans up to 600 million won, and the concentration effect is gradually appearing."