Grouped as an independent regulated area of ​​Paju, Cheonan, Changwon and Ulsan | Hankyung.com

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Already this week, Paju in Gyeonggi province, Cheonan in Chungnam, Changwon in Gyeongnam, Ulsan and parts of Busan are expected to be grouped together again as regulated real estate areas. During the ’11-19 Real Estate Plan’ last month, seven locations, including Dongnae, Nam, Haeundae, Yeonje, Suyeong-gu, Daegu, Suseong-gu, Gyeonggi and Gimpo, were designated as target areas for adjustment, and house prices rose due to the ‘balloon effect’.

According to the government and the real estate industry on the 16th, the Ministry of Lands, Infrastructure and Transport is scheduled to hold a housing policy review committee starting this week to deliberate on an agenda to designate a region with a strong increase. in house prices as target areas of adjustment.

When the Ministry of Land, Infrastructure and Transportation announced the 11/19 measures, it said: “If house prices in some areas such as Ulsan, Cheonan and Changwon continue to overheat, we will immediately review the designation of areas subject to adjustment.” Even with such warnings, additional steps are being taken as home prices continue to rise. A government official said: “Before the National Assembly staff hearing on candidate Byeon Chang-heum scheduled for the 23rd, the momentum of rising house prices should be mitigated.”

To designate an area subject to adjustment, the rate of increase in house prices in the area must exceed 1.3 times the rate of increase in consumer prices in the last three months. With this in mind, Paju is the most likely to be designated. In Paju, apartment prices have soared 4.18% in the last three months, concentrating in the new town of Unjeong, where the Metropolitan Metropolitan Railway Express (GTX) -A has a good chance. Recently, an 84m2 apartment with a dedicated area was traded for more than 900 million won. As Gimpo, which had remained an unregulated area in the metropolitan area alongside Paju, became a target area for adjustment last month, the buying trend turned towards Paju.

Paju · Cheonan · Changwon · Ulsan Adds an adjustment area to rising house prices
Another ‘mole capture’ regulation … only increases the balloon effect

In the Chungcheong area, Seobuk-gu, Cheonan is anticipated to be a candidate site for the target area of ​​mediation. In the last three months, apartment prices in Cheonan have increased 3.52%, especially in the Northwest District, with an increase rate of 4.24%. Investors flocked to Sejong, where prices rose on the news before the National Assembly. In Changwon, Gyeongsangnam-do, apartment prices have risen 4.49% in the last three months. Strong growth areas such as Changwon Uichang-gu (6.09%) and Seongsan-gu (8.67%) are expected to be grouped as regulated areas. Dalseo-gu, Daegu (4.26%) and Nam-gu, Ulsan (7.91%) are also more powerful than those of the strongest. It is possible to designate districts in Busan that remain unregulated.

It is known that the agenda also includes a plan to lift some areas where house prices are stable, such as Yangju, Gyeonggi, while further designating a regulated area. The Ministry of Lands, Infrastructure and Transport also explained on the 11th, “It is also investigating in detail whether or not the house price stabilization tax is being applied in some of the existing regulated areas.”

Loan, tax and underwriting requirements are tightened when it becomes an area subject to adjustment. First, increase the acquisition tax. Beginning July 10, when a home is purchased in an area subject to adjustment, an 8% acquisition tax is required for 2 homes and 12% for 3 or more homes. The Mortgage Recognition Rate (LTV) is capped at 50% for house prices below 900 million won and 30% above 900 million won.

Also, when buying a home, a financing plan must be submitted. Owners of two or more houses cannot receive a mortgage loan. The capital gains tax for multi-dwelling individuals is excessive and no special deductions are received for long-term properties. In the case of a single-family home, you need to live two years to receive the transfer tax exemption.

The government designated most of the metropolitan area as regulated areas through the latest ‘6/17 measures’. Later, when the balloon effect spread to unregulated regions, additional regulations were initiated last month and a regulatory card was introduced one more month.

However, it is noted that the effect of stabilizing house prices cannot be achieved by increasing only the regulated areas as a ‘mole catch’ without supply measures to stabilize the market. Even after Gimpo, Gyeonggi Province was designated as a target area for adjustment, the rise in house prices has not stopped. Professor Shim Gyo-eon from Konkuk University’s Real Estate Department said: “If it becomes a regulated area, now it is becoming a formula for neighboring areas to grow.”

Reporter Choi Jin-seok [email protected]