The districts of Gangnam (Gangnam, Seocho, Songpa) and Yongsan, where the land transaction permit system (known as the ‘Toto system’) is applied, are notifying applicants that they will apply the Toto system to ‘residential rights’ transactions but will postpone the requirement for actual residency to ‘two years after receiving usage approval (completion).’ The Ministry of Land, Infrastructure and Transport is expected to announce guidelines later this week, but as inquiries have flooded in, each district has decided its own measures. It is understood that the Ministry is also reviewing guidelines in the same direction.
According to reports from the Ministry of Land, Infrastructure and Transport and various districts on the 14th, Songpa District has confirmed that it notified the association of the ‘Machcheon District 4’ redevelopment project, which is currently underway, that it will apply the Toto system to ‘residential rights transactions.’ In an official document sent to applicants under the district mayor’s name, Songpa District stated, “Only properties registered as ‘apartments’ are subject to the land transaction permit system while the building register has not been destroyed. However, once the building register is destroyed, the entire land will be subject to permission.” The ‘Machcheon District 4’ received management authorization last year and began relocation in September of the same year. Demolition is currently in progress.
Gangnam District plans to apply the existing approval cases of the designated zones of Jam, Sam, Dae, and Cheong (Jamsil, Samsung, Daechi, Cheongdam) as they are. Gangnam has previously approved the application of the Toto system to residential rights transactions for ‘two years of actual residency after usage approval’ for the Cheongdam Reuel (Cheongdam Samik) and Acro Samsung (Hongsil) complexes. A Gangnam official noted, “We have previously given 10 approvals for reconstruction residential rights under the condition of two years of actual residency. We are waiting for the Ministry’s guidelines, but I think they will be in a similar direction.”
On the 24th of last month, the Seoul city government decided to expand the application of the Toto system to the entirety of the Gangnam districts and Yongsan, leading to a flood of inquiries related to ‘residential rights’ transactions at each district office. This is because the Toto system, which had only been applied to areas in Gangnam such as Jam, Sam, Dae, and Cheong, has been extended to include Gangnam districts and Yongsan, encompassing numerous redevelopment and reconstruction complexes. While the Toto system requires compulsory conditions of ‘two years of actual residency after purchase,’ some reconstruction and redevelopment complexes may no longer be inhabitable. On the 27th of last month, the Ministry of Land, Infrastructure and Transport, the Seoul city government, and four district offices held a working-level meeting at Seoul City Hall and decided that the Ministry would issue a ‘legal interpretation’ soon.
A Yongsan District official stated, “When an application for approval in the Toto zone is submitted, a decision must be made within 15 days,” adding, “We are receiving numerous inquiries in the Hannam New Town area.”
The Ministry of Land, Infrastructure and Transport plans to announce its guidelines on the application of the Toto system to ‘residential rights’ this week. Internally, a direction has been established to apply and approve the Toto system under the condition of ‘two years of actual residency after completion.’ An official from the Ministry stated, “The district office has requested that for residential rights, permission should be granted with a promise of two years of actual residency at the time of moving in,” and added, “We are reviewing that direction.”
The apartments where residential rights transactions are possible within Gangnam districts and Yongsan include ▲Cheongdam Reuel ▲Cheongdam Samik ▲Daechi Area 3 ▲Dogok Samho in Gangnam; ▲Bangbae 13 District ▲Bangbae 14 District, ▲Bangbae Shin Dong-A ▲Banpo 1, 2, 4 townhouse ▲Banpo 3 townhouses ▲Sinbanpo 4 District ▲Sinbanpo 18th Block 337 ▲Sinbanpo 21th Block ▲Sinbanpo 22th Block ▲Bangbae 5 District ▲Bangbae 6 District ▲Bangbae Samik ▲Seocho Shin Dong-A in Seocho; and ▲Hannam 3 District ▲Ichon Hyundai Mansion (remodeling) in Yongsan.