Citizen Can Purchase For Only Resident Purpose

66.97% of Seoul metropolitan area including Seoul (6.6 billion square meters) will be designated as transaction permission area additionally. Therefore, if a person has genuine purpose of residency can purchase real estate in this area.

At 1st, Ministry of Construction & Transportation (MCT) announced additional stabilization policy for real estate including the extension of real estate transaction permission area.

As MCT judged the possibility of price increase in many areas, it included 11 local councils in ‘Gangbuk New Town Development Area’ of Seoul, some of Incheon and 28 local councils of Gyeonggi-do in real estate transaction permission areas. MCT decided to include 6.6 billion square meters in the permission area for 5 yeas at maximum. The system will be reviewed in the Committee of National Land Development and be enforced from 10th of this month.

Therefore, 83% of metropolitan area will be regulated for the transaction including existing real estate transaction permission area (Green Belt) and Seongnam-si, Pangyo, and some of new towns in Gyeonggi.

In this time, the designated districts are non-urban planning and green areas of Seoul, Incheon and Gyeonggi excluding Icheon-si, Yeoju and Gapyeong-gun.

The resident, commercial and industrial areas that have already completed the development in urban planning areas will be excluded. The restriction of the real estate transaction will last in the end of November of 2004.

In the area of Gangbuk New Town planned by Seoul City Hall and near areas such as ▽Jeongrung, Gilum-dong of Seongbuk-gu ▽Sangwangsimri, Hawangsimri, Hongil, Doseon-dong of Seongdong-gu ▽Yongdu-dong, Shinseol-dong of Dongdaemun-gu ▽Shindang, Hwanghak-dong of Chung-gu ▽Sungin-dong of Chongro-gu, etc total 15.6 million square meters will be also designated as real estate transaction permission area for 5 years until the end of November of 2007.

In the permission area the real estate transaction over 180 square meters foe residency, 200 square meters of commercial purpose, 660 square meters for industrial purpose and 1,000 square meters for agriculture purpose and 2,000 square meters for forest purpose should be permitted by the mayor after examining about genuine demander, usage purpose, etc.

MCT will designate Dongbaek resident zone of Yongin-si in Gyeongi, which begins distribution of resident rights of 16,660 units of housing including apartments as Fevering speculation area additionally.

The area designated as fevering speculation area restrains the transaction of resident rights and the distribution of ownership of offistel and complex building should be performed openly. Additionally, more than 50% of below of 85square meters resident housings should be distributed to non-housing householders firstly.

MCT will monitor real estate market regularly and extend the permission area if necessary, and investigate speculators to stabilize the market.

Ki-Jeong Ko koh@donga.com