Three areas — Dongtan District in Hwaseong, Giheung District in Yongin, and Guri — were designated as new regulated zones (areas subject to adjustment and overheated speculation districts) on the 30th.
The Ministry of Land, Infrastructure and Transport said on the 30th that, after a review and resolution by the Housing Policy Deliberation Committee on the 29th, it will newly designate three areas where home prices have recently surged as areas subject to adjustment and overheated speculation districts. The designation will take effect on the 1st of next month.
In the case of Dongtan District in Hwaseong and Giheung District in Yongin, expectations for rising home prices driven by a boom in the semiconductor industry and improvements in transportation infrastructure such as the opening of the Metropolitan Express Railway (GTX-A) have sustained the uptrend. In Guri, prices rose on the back of demand for stationside areas adjacent to Seoul.
In Dongtan District, the monthly sale price change rate for dwellings was 1.10% in March, 1.13% in April, and 1.57% in May. Since the start of the year, the cumulative home price increase has exceeded 11%.
In Giheung District, dwelling prices rose every month by 0.74% in March, 0.85% in April, and 0.95% in May. Guri's monthly sale price change rate for dwellings was 1.18% in March, 1.16% in April, and 1.15% in May.
An area subject to adjustment can be designated if the dwelling price increase rate over the past three months exceeds 1.3 times the consumer price inflation rate of the relevant city or province and conditions such as overheated subscription or increased pre-sale right transaction are met. An overheated speculation district can be designated if the dwelling price increase rate over the past three months exceeds 1.5 times the consumer price inflation rate of the relevant city or province.
Along with the designation as regulated zones, Dongtan District, Giheung District, and Guri are slated to be designated as land transaction permit zones starting on the 5th of next month. Gyeonggi Province plans to designate these areas as land transaction permit zones from the 5th of next month through Dec. 31 of next year after going through the provincial urban planning committee.
Accordingly, the areas bound by regulated zone and land transaction permit zone designations have increased to 25 autonomous districts in Seoul and 15 areas in Gyeonggi.
The Ministry of Land, Infrastructure and Transport (MOLIT) said, "Along with the new designation of overheated speculation districts and areas subject to adjustment, we plan to strengthen monitoring of areas with rising dwelling prices, including strict responses to illegal acts that disrupt the real estate market."