The Gangnam District (Gangnam, Seocho, and Songpa) and Yongsan District in Seoul will apply a one-year deadline for existing homeowners to dispose of their dwellings when conducting transactions in land transaction permission zones. The method of disposing of existing dwellings will also be allowed for rental, including lease agreements. The change aims to standardize the disposal periods and methods across the districts since differences had caused confusion in the market.
According to the Ministry of Land, Infrastructure and Transport, Seoul City, and the districts of Gangnam 3 and Yongsan on the 15th, they are prominently reviewing the criteria for applying the land transaction permission system. A government official noted, “I understand that there has been a consensus to apply a one-year disposal deadline for existing homeowners in Gangnam 3 and Yongsan.”
When existing homeowners purchase dwellings in land transaction permission zones, the deadline for disposing of their existing dwellings varies by district. In Gangnam and Songpa, the deadline for disposing of existing dwellings is one year. Seocho applies a six-month deadline, while Yongsan has four months. Other districts that are subject to the land transaction permission also have different deadlines. Yangcheon requires disposal within a year, while Seongdong and Yeongdeungpo have set the deadline at six months.
Gangnam 3 and Yongsan districts are actively considering expanding the methods for disposing of existing dwellings to include rentals. Previously, homeowners were required to sell their existing dwellings when purchasing homes in land transaction permission zones. However, although not common, if deemed necessary, the districts allowed the renting of existing dwellings to facilitate the transaction of apartments in land transaction permission zones.
A Gangnam District Office official explained, “The regulations regarding the processing of existing dwellings state that renting is possible, so we are discussing options to allow rentals without disposal.” He added, “It is permissible to sell the existing dwellings, but there is also a method that allows purchasing a house in a land transaction permission zone while having tenants in the existing residence.”
This decision arises from the confusion in the market due to differing approval criteria for land transaction permission zones across member districts. When buying land in land transaction permission areas, approval must be obtained from local government heads (mayors, county heads, or district heads). The requirement for actual residence when purchasing dwellings in land transaction permission zones is uniform at two years across all regions. However, criteria regarding other deadlines and methods for disposing of existing dwellings have varied without guidelines, leading to confusion in market transactions between districts within Seoul.
The Ministry of Land, Infrastructure and Transport plans to compile this information and issue guidelines. A ministry official stated, “We plan to organize and share what has been discussed among the district offices soon.”