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In Gwangmyeong City and Siheung City, Gyeonggi Province, where reports of speculation have increased in Korea’s Third New City, employees of the Land and Housing Corporation (LH) have increased, land transactions have increased. have shot up in recent years and about half of them have been bought by outsiders. .
In the case of the Gwangmyeong-si pure land (not including buildings) traded during this period, 3 out of 10 lots were owned by the “people of Seoul.” There is criticism that the location of a new city that can be easily predicted has fostered speculation.
Land buyers flocked to development expectations
According to the statistics system of the Korea Real Estate Agency on the 7th, the pure land transaction volume in Gwangmyeong City, which was less than 1,000 parcels per year until 2016, increased to 1,665 parcels in 2018. In September That year, the government first mentioned the third new city designation plan and, in December, announced for the first time four districts, including Wangsuk Namyangju and Gyosan Hanam, about 2 km from the Seoul border.
Although it was eliminated in the first selection, the pure land trade in Gwangmyeong, which was still a leading candidate, increased to 1,715 lots in 2019 and peaked at 2,520 lots last year.
Pure land trading volume in the adjacent city of Siheung increased 77% over the previous year from 2016 (7,312 lots). After 9,243 lots in 2017, it maintained a high level until 2018 (8,111 lots), 2019 (8,246 lots) and last year (7,352 lots). 2017, which recorded the highest volume of transactions to date, was the first time that LH employees, suspected of speculation, bought the local land for the first time.
Outside of the pure land where the “change of hand” took place, the proportion of purchases by foreigners reached 50% in both Gwangmyeong and Siheung, and the proportion of Seoul citizens is high. In the past three years, the proportion of Seoul citizens among the buyers of pure land in Gwangmyeong City is close to 30%, and in Siheung City, it is close to 20%.
The share of Seoul residents in pure land transactions was the highest in 2018, when the city’s third new plan was first launched. In Gwangmyeong City, Seoul residents occupied 551 lots (33.1%) out of a total of 1,665 lots. In Siheung City, 1,980 (24.4%) of the total 8,111 lots were owned by Seoul residents.
Most of the pure land is rice paddies or forests. It may have been bought for a weekend farm, but considering the surge in Seoul residents at the time the city’s new plan was announced, the “investment purpose” is suspected.
“Even if it is kept secret, it can always be predicted.”
Fundamental questions are also raised about the designation of a new city and compensation. This is because the location of new cities that the government creates for large-scale supply in a short period is usually within the predictable range and is a target of speculators. In particular, this trend is more severe in the metropolitan area, where there is not enough land to develop.
Gwangmyeong and Siheung districts were designated as special management areas after being removed from the Bogeumjari district in the past, and they were always mentioned as promising candidates for new cities. When the government included new public housing sites in the second and fourth housing supply measures early last month, the industry again selected them as the top candidates, and it was selected as the third new city on the 24th of last month and not did. deviate from the prediction.
Even if the government, local governments and LH decide in a “closed room”, many of them are predictable, so they cannot prevent speculative demand from moving one step further. Consequently, there is a growing voice that it is necessary to collect the views of residents and reflect them in advance in land or urban planning, and promote long-term development by linking them to land transaction permit zones.
Professor Shim Gyo-eon from Konkuk University said: “We are the only country in the world where the government secretly selects a new city.
Reporter Kim Chang-hoon [email protected]
News directly edited by Hankook Ilbo can also be viewed on Naver.
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