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▲ The Ministry of Land, Infrastructure and Transportation has started a full procedure to check Changwon, Gyeongsangnam-do, etc. as a regulated real estate area. In addition to the adjustment areas discussed above, they are trying to designate a district overheated by speculation. Apartment complexes in Paju-si, Gyeonggi-do. (Source = Gyeonggi-do)
The Ministry of Land, Infrastructure and Transportation has initiated a procedure to review Changwon, Gyeongnam and other areas such as areas regulated by real estate. In addition to the adjustment areas discussed above, they are trying to designate a district overheated by speculation.
The Ministry of Land, Infrastructure and Transportation recently requested an opinion from each city / province regarding the designation of the jurisdiction’s target area and overheated discharge district. This is preliminary work to designate a regulated area.
According to the Housing Act, the mayor / governor’s opinion must be heard to designate an area subject to adjustment or an overheated district for speculation. Based on this opinion, if the housing policy deliberation committee approves the review, the regulated area is designated.
It is mandatory to seek the opinion of the Mayor / Governor prior to the designation of the regulated area, but there is no binding force to follow. For this reason, whenever a regulated area was designated, local governments screamed that listening to opinions was an act of catering.
Changwon also played with speculation about the district cards.
This time, the Ministry of Land, Infrastructure and Transportation decided to link Paju City, Gyeonggi Province, Changwon City, Gyeongnam Province, and Cheonan City, Chungnam as regulated areas. This is because the ‘balloon effect’ is appearing (a phenomenon in which a problem is suppressed on the one hand and a new problem arises on the other), in which the demand for investment in these areas free of real estate regulations is precipitating towards the area. In the Paju and Changwon housing markets, the balloon effect is particularly evident as the neighboring regions of Gimpo and Busan were designated as regulated areas. The Ministry of Land, Infrastructure and Transportation announced last month that it is intensively monitoring the Cheonan and Changwon housing markets together with Ulsan.
The quantitative requirements for the designation of regulated areas are also met. According to the survey of the Korea Real Estate Agency, the home sales price index in Paju, Changwon and Cheonan rose 0.7%, 1.4% and 1.3%, respectively, during the last three months (September to November). It exceeds 1.3 times the consumer price index during the same period specified as a requirement for the designation of areas subject to adjustment in the housing law enforcement regulations. From September to November, the consumer price index in these regions (Gyeonggi, Gyeongnam and Chungnam) decreased slightly.
The Ministry of Land, Infrastructure and Transportation is also considering a plan to designate Changwon City as an overheated speculation district, which has the steepest rise in house prices. In districts overheated by speculation, in addition to the strong tax and underwriting regulations for multi-dwelling residents that apply to areas subject to adjustment, reconstruction and redevelopment regulations are further strengthened and the loan limit lowered . For this reason, Gyeongnam Province also asked the Ministry of Land, Infrastructure and Transport last month to designate a part of Changwon City as a target area for adjustment in order to stabilize the housing market, but excluded the designation. from an overheated district for speculation. It is because it could be harmed by rebuilding old houses.
Other municipalities are also concerned about the designation of regulated areas. Gyeonggi-do asked the Ministry of Land, Infrastructure and Transportation to designate only the regions that should be regulated by eup, myeon and dong. Chungnam-do also said: “The house price in Cheonan has risen a lot, but it is necessary to be cautious as it is due to the situation of the domestic property market.
It is unclear whether some of the existing regulated areas will be eliminated while additionally designated areas are subject to overheated discharge areas and adjustments. Incheon City and Chungbuk Province (Cheongju City), which are considered the most promising candidates for deregulation, said they had not received any inquiries from the Ministry of Land, Infrastructure and Transport. According to the Housing Law, it is also necessary to listen to the opinions of the Mayor / Governor when removing a regulated area.
