Since the implementation of the land transaction permission zone system (land transaction permission system) in 2020, the number of land transaction permits has exceeded 12,000. The approval rate also approached 100% compared to the number of permit applications.
According to data submitted by the Seoul Metropolitan Government to Representative Hwang Hee of the Democratic Party of Korea on the 13th, the total number of land transaction permits from 2020 to March of this year was found to be 12,828.
By year, the number increased from 707 in 2020 to 1,669 in 2021, a total increase of 962. It then decreased to 1,399 in 2022 due to severe trading stagnation caused by rising interest rates, but increased to 3,389 in 2023 and 4,490 last year.
It appears that the preference for 'one high-quality unit' has strengthened due to the increase in the areas eligible for land transaction permission and the intensification of regulations on multi-homeowners, leading to a concentration of buying power in the Gangnam area and key reconstruction complexes.
The region with the highest number of land transaction permits by district was Gangnam, with a total of 4,344 permits granted during the survey period. This accounts for 33.9% of the total permits in Seoul. Following this were ▲ Songpa with 2,743 permits ▲ Yangcheon with 1,845 permits ▲ Yeongdeungpo with 592 permits ▲ Seocho with 434 permits.
Despite the many restrictions, such as actual residence requirements, the transaction approval rate (the number of approved permits compared to the number of applications) was close to 100% in areas where the land transaction permission system applies.
During the survey period, a total of 12,906 applications for land transaction permits were recorded, with an average approval rate of 99.4%.
The total cases where permits were not granted were 76. The reasons for rejection included ▲ ineligible for actual residence (30 cases) ▲ ineligible for agricultural and forestry management standards (26 cases) ▲ ineligible for self-management purposes (10 cases) ▲ failing to meet rental business conditions and not fulfilling preservation requirements (8 cases).
In particular, in the Seoul real estate market, the 'three districts of Gangnam' (Seocho, Gangnam, Songpa) and reconstruction complexes have driven up housing prices, raising questions about the effectiveness of the land transaction permission system.
Representative Hwang Hee noted, 'The original intention of the land transaction permission system is to apply it to planned development lands to prevent the influx of speculative forces, such as new town development or road construction,' adding that 'it is not desirable to apply it in the middle of densely populated cities.'
He further stated, 'Merely designating a few specific areas as land transaction permission zones will not solve the real estate problem,' and added that 'it would rather be more helpful to increase the proportion of public land acquisitions for market stabilization.'