The cities of Dongtan in Hwaseong, Giheung in Yongin, and Guri are set to be designated as speculative overheating zones and adjustment target areas due to a recent surge in housing prices.
On June 30, the Ministry of Land, Infrastructure and Transport announced that it will officially designate these three areas following a review and decision by the Residential Policy Review Committee. The designation will take effect on July 1.
The ministry determined that these regions have experienced significant increases in housing prices. The price hikes in Dongtan and Giheung are attributed to expectations of rising home values due to the semiconductor industry's growth and improvements in transportation infrastructure, such as the opening of the GTX-A line. Guri has seen continued price increases driven by demand in areas close to Seoul.
Monthly housing price changes show that Dongtan's prices rose from 0.78% in February to 1.57% in May. Giheung recorded increases of 1.08% in February, peaking at 0.95% in May. Guri also maintained high growth rates, with increases from 1.77% in February to 1.15% in May.
With this new designation, regulations on loans, taxes, and housing subscriptions will be tightened in these areas. For housing purchase loans, a loan-to-value ratio of 40% will apply to first-time buyers and those with one home under certain conditions, while existing homeowners will face stricter lending limits. Additional taxes on multiple property owners and stricter conditions for tax exemptions for single-home owners will also be enforced.
Subscription regulations will also be tightened. In regulated areas, applicants must wait two years after opening a subscription account, meet household head requirements, and face restrictions on winning bids within the past five years. Limitations on re-applications and resale will also be implemented.
Additionally, Gyeonggi Province plans to designate Dongtan, Giheung, and Guri as land transaction permission zones starting July 5, which will take effect five days after the announcement.
As a result of this action, the number of speculative overheating and adjustment target areas in Gyeonggi Province will increase from 12 to 15. Existing regulated areas include Suwon's Jangan, Paldal, and Yeongtong districts, as well as Seongnam's Sujeong, Jungwon, and Bundang districts, Anyang's Dongan district, Gwacheon's area, and others.
The Ministry of Land, Infrastructure and Transport stated that these measures aim to curb speculative purchases, protect genuine buyers, and address the overheating housing market. The ministry also plans to respond strictly to illegal activities disrupting the real estate market and enhance monitoring of areas experiencing price increases.
To stabilize the housing market, the ministry will continue to implement existing plans to increase housing supply, including urban development projects and expanding rental housing options. It will also regularly check for on-site issues through a government-wide housing supply support center.
* This article has been translated by AI.
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