In Dongtan District in Hwaseong, Gyeonggi, Giheung District in Yongin, and Guri, which were designated as land transaction permit zones, the last-minute transactions seen before the system takes effect did not appear this time, unlike in previous years. The market sees this as the result of the regulatory possibility having already been priced in and buyers pulling back as home prices surged in a short period, increasing the burden.
According to the Ministry of Land, Infrastructure and Transport's actual transaction price disclosure system on the 5th, apartment sales reported as contracts dated the 30th of last month totaled 172 in Dongtan, 133 in Giheung, and 36 in Guri. This far exceeds the average daily transactions during the previous week (June 23–29) of 37 in Dongtan, 29 in Giheung, and 10 in Guri.
These areas were designated as overheated speculation districts and areas subject to adjustment on the 30th of last month, with loan regulations and heavier acquisition and capital gains taxes applied from July 1. Demand to complete contracts before the rules took effect appears to have concentrated on June 30.
By contrast, transactions from the 1st to the 4th, ahead of the land transaction permit zone designation taking effect on the 5th, numbered just 3 in Dongtan, 6 in Giheung, and 2 in Guri.
This contrasts with October last year, when the land transaction permit zone was expanded. At that time, as the government set a grace period before enforcement, apartment transactions in Seoul totaled 3,551 from the announcement date to the day before enforcement, and 2,604 in 12 regulated areas in Gyeonggi, up 39.9% and 81.3%, respectively, from the previous five days.
Experts cite the increased price burden from the recent surge in home prices as the biggest reason.
Nam Hyeok-u of Woori Bank's Real Estate Research Institute said, "In Dongtan, prices rose sharply in a short time, increasing the burden on buyers," adding, "As urgent sales have decreased and the view that home prices are expensive has spread, some demand is shifting to nearby alternative areas."