Gyeonggi Province Newly Designates 170.5㎢ of Land Transaction Permit Zones in Giheung, Incheon and Dongtangu, Hwaseong and Guri

[Suwon Ilbo=Reporter Kim Gap-dong] Gyeonggi Province has newly designated Giheung-gu in Yongin-si, Dongtangu in Hwaseong-si, and Guri-si as land transaction permit zones. The permit targets are limited to apartments, and the designation period is 1 year and 6 months from July 5 to December 31 next year.

The province announced on the 30th the designation of a total of 170.5㎢ including Giheung-gu, Yongin-si (81.64㎢), Dongtangu, Hwaseong-si (55.52㎢), and Guri-si (33.34㎢) as land transaction permit zones.

This designation was promoted in connection with the Ministry of Land, Infrastructure and Transport's designation of the corresponding areas as adjusted target areas and speculative overheated districts on the same day. The province, through monitoring housing prices, transaction volumes, and market trends in the target areas, formed consensus with the Ministry of Land, Infrastructure and Transport on the need for management to block speculative transactions and protect actual users.

Permit targets are limited to apartments as defined in Appendix 1 of the Enforcement Decree of the Architecture Act. Appendix 1 defines "apartments" among multi-family housing as residential units with 5 or more floors used for residential purposes. Accordingly, when parties to a transaction wish to conclude a transaction contract for apartments exceeding the standard floor area (6㎡ for residential areas, etc.) in the relevant area, the transaction parties must obtain permission from the respective mayor or district head.

The province judged that rising housing prices and increased transaction volumes have recently appeared in the Yongin Giheung, Hwaseong Dongtangu, and Guri areas. As the possibility of demand inflow increases due to proximity to Seoul, expectations for expanded transportation infrastructure, and revitalization of the semiconductor industry, management from a market stabilization perspective is deemed necessary.

By region, Giheung-gu, Yongin-si has been analyzed as an area with high potential for demand inflow due to proximity to Seoul and expectations from the semiconductor industry. Dongtangu, Hwaseong-si was judged to have concerns about market overheating as residential preference is high around Dongtan New City and expectations for expanded transportation and industrial infrastructure align. Guri-si, adjacent to Seoul, was identified as requiring protection of actual users due to high potential for housing replacement demand inflow and price increase pressure.

The province specified permits to be limited to apartments in consideration of the fact that speculative concerns are manifested primarily in residential real estate such as apartments rather than in land overall. The policy is to block speculative demand inflow while minimizing general land transaction inconvenience that could occur if the entire land were subject to designation.

Once designated as a land transaction permit zone, prior permission from the respective mayor or district head is required when transacting permitted real estate. If a contract is concluded without permission or permission is obtained through improper means, imprisonment of up to 2 years or a fine of up to 20 million won is imposed. If permission is obtained, the property must be used for the permitted purpose for a certain period, and violation of this results in performance enforcement charges within 10% of the acquisition price assessed annually.