The government reported on the 23rd that the volatility of housing prices in Seoul has increased recently, particularly in the three districts of Gangnam (Gangnam, Seocho, and Songpa) and Yongsan. It stated that it will designate additional regulatory areas and land transaction permission zones if necessary.

View of the apartment complex seen from Seoul Sky in Songpa District, Seoul. /Courtesy of News1

On that day, the government held a meeting of the '16th Real Estate Market and Supply Situation Inspection Task Force (TF)' co-chaired by Bom Kim, acting Minister of Economy and Finance and First Vice Minister, and Jin Hyun-hwan, First Vice Minister of the Ministry of Land, Infrastructure and Transport, with attendees from the Ministry of Economy and Finance, Ministry of Land, Infrastructure and Transport, Financial Supervisory Service, Seoul City, Bank of Korea, and Financial Supervisory Service.

After the meeting, the government noted, "Recently, the volatility of housing prices in areas such as Yongsan and the three districts of Gangnam has slightly expanded," and added, "We will continuously and closely monitor real estate market trends and implement market stabilization measures, such as additional designations of adjustment target areas, speculative overheating zones, and land transaction permission zones if necessary."

The government mentioned that it will swiftly carry out follow-up measures to expedite approvals and construction to ensure that the results of housing supply become visible. As of the 16th, approximately 377,000 applications for new purchase leases, which allow for prompt occupancy in areas with high demand such as Seoul and the metropolitan area, were received, of which 114,000 passed the review. The commitment to purchase unsold units in the metropolitan area, aimed at enabling rapid construction of third-phase new towns, has been completed for 25,000 units out of 36,000 target sites.

During the meeting, Seoul City stated that it is continuing efforts to expand housing supply in urban areas with high demand by temporarily increasing the floor area ratio up to 300% to accelerate the pace of reconstruction and redevelopment.

The government also emphasized the point that it will strengthen measures against fraudulent transactions. Since March, the Ministry of Land, Infrastructure and Transport and Seoul City have organized field inspection teams to check all reported transactions and conduct on-site inspections of brokerage offices. Indicators of price manipulation collusion have been detected, leading the Seoul Metropolitan Government's Civilian Justice Police to commence an investigation, which is ongoing. Should illegal activities be confirmed as a result of the detailed investigation, a strict response based on a zero-tolerance principle will be implemented.

Seoul City plans to check violations of the real residence obligation for apartments subject to land transaction permission in cooperation with autonomous districts and impose penalties of up to 10% of the real transaction price on violators.

Meanwhile, the government stated that it will continue to closely monitor housing market trends through the 'Real Estate Market and Supply Situation Inspection TF' and will maintain cooperation with related ministries and local governments to ensure sufficient housing supply and appropriate liquidity management.