Suwon Proposes to Ministry of Land, Infrastructure and Transport to Lift Designation as Speculative Overheated District

[Suwon Ilbo=Staff Reporter Jung Jun-sung] Suwon City announced on the 9th that it has proposed to the Ministry of Land, Infrastructure and Transport to lift the designation of Suwon as a speculative overheated district. The city had previously proposed the same measure to Gyeonggi Province on the 3rd.

Through an official letter sent to the Ministry of Land, Infrastructure and Transport on the 7th, Suwon City stated, "Suwon City is experiencing decreased housing transaction volume, and housing price declines are accelerating due to interest rate hikes," and explained that most indicators for speculative overheated district designation criteria—including △housing price increase rate △apartment subscription competition rate △presale rights transaction volume—have declined and do not meet the designation standards.

The city also stated, "Housing transactions have plummeted and transaction prices have fallen, leaving virtually no housing speculation," adding "Citizens are facing increased hardship due to interest rate hikes and loan regulations, and demands for the lifting of the restricted area designation are mounting." It further noted, "We plan to continue monitoring and respond to stabilize the Suwon housing market."

According to Article 63 of the Housing Act, the designation of a speculative overheated district is to be made within the minimum scope necessary to achieve its designation purpose, and the designation must be lifted without delay when it is recognized that the grounds for designation no longer exist.

Meanwhile, Suwon City was designated as a speculative overheated district on June 19, 2020.