▲ A notice welcoming land transaction permit consultations is posted on a real estate office window.
Out of 12 areas in Gyeonggi Province designated as land transaction permit zones under the October 15 real estate measures last year, 11 saw a greater increase in apartment prices during the first year following the regulation compared to the year before.
The apartment price growth rate in Gyeonggi's Gwangmyeong surged from around 2% before the regulation to 21% after.
Suji-gu in Yongin and Bundang-gu in Seongnam also jumped over 20% following the regulation, significantly widening their upward trends.
Experts point out that at this juncture, the effectiveness of the regulations needs to be examined while also considering the side effects inflicted on real homebuyers and tenants.
Analyzing the weekly apartment sales price index by the Korea Real Estate Board today (October 18), apartment price growth rates expanded in 11 out of 12 Gyeonggi regions during the 51 weeks before and after the designation of land transaction permit zones on October 20, 2025.
This analysis compares apartment price fluctuation rates for the 51 weeks before designation (October 28, 2024 to October 20, 2025) and the 51 weeks after (October 20, 2025 to October 12, 2026), based on the designation date of October 20 last year.
Apartment prices in Gwangmyeong rose 1.8% during the 51 weeks prior to designation, but spiked by 20.8% over the 51 weeks following it.
With its growth rate widening by 19.0 percentage points, it recorded the largest expansion among the 12 Gyeonggi areas.
Suji-gu in Yongin also saw its growth rate jump by 14.9 percentage points, moving from 5.2% to 20.1% over the same period.
Bundang-gu in Seongnam rose 13.8% prior to designation and continued its upward trend with a 21.7% increase afterward, expanding its growth rate by 7.9 percentage points.
Among the 12 Gyeonggi regions, it recorded the highest apartment price growth rate following the designation.
Dongan-gu in Anyang rose from 6.7% to 19.2%, and Yeongtong-gu in Suwon increased from 3.1% to 18.7%.
Hanam saw an expansion from 4.3% to 16.8%, Jungwon-gu in Seongnam from 2.1% to 15.4%, and Sujeong-gu in Seongnam from 3.6% to 13.2%.
Uiwang also saw its growth rate rise from 1.0% to 12.0%, while Paldal-gu in Suwon accelerated from 1.9% to 9.1%, and Jangan-gu in Suwon from 1.8% to 7.6%.
Conversely, Gwacheon was the only area among the 12 Gyeonggi regions where the growth rate slowed down.
Apartment prices in Gwacheon, which had climbed 16.6% during the 51 weeks before designation, managed only a 5.4% increase over the 51 weeks after.
This represents a 11.2 percentage point drop in the growth rate.
The overall apartment price growth rate across Gyeonggi Province increased from 0.4% to 6.8% over the same period.
Through the October 15 measures last year, the government expanded regulated areas to encompass all of Seoul and 12 regions in Gyeonggi, designating them as land transaction permit zones.
Subsequently, on July 5 this year, the government additionally designated three areas: Dongtan-gu in Hwasung, Giheung-gu in Yongin, and Guri.
As a result, land transaction permit zones have expanded to cover all of Seoul and 15 regions in Gyeonggi.
Within these permit zones, buyers purchasing apartments exceeding a certain size must obtain approval from the local government and are obligated to reside in the property for two years after acquisition.
The measure aims to curb speculative demand by restricting so-called gap investments, which involve purchasing homes while keeping existing tenants.
Given that various factors—such as housing supply conditions and shifts in demand—influence apartment price growth rates, it is difficult to conclusively attribute the effects of the permit zone designation solely to price fluctuations before and after the regulation.
However, as apartment price increases have widened even in major Gyeonggi areas following the designation, controversies persist over the effectiveness and side effects of broad transaction regulations.
Park Hap-soo, an adjunct professor at Konkuk University's Graduate School of Real Estate, stated, "The mandatory actual residency requirement in land transaction permit zones is forcing out existing tenants and driving up chonsei and monthly rent prices, thereby compounding residential anxiety for ordinary citizens." He added, "Government policies should prioritize housing stability for low-income earners, but regulations aimed at curbing high-priced housing are instead harming low-income households."
He further advised, "Now that transaction regulations have been in place for a year, opinions on the land transaction permit zone designation should be gathered through public hearings and policy directions should be determined based on national consensus."
On the other hand, some market analyses suggest that the government utilized the policy card of land transaction permit zones to at least moderately control a real estate market that otherwise could have recorded even higher growth rates.
The government maintains its stance of deciding whether to lift the land transaction permit zones while monitoring additional market conditions.
Kim Yi-tak, First Vice Minister of Land, Infrastructure and Transport, stated during the 1st Regular Housing Supply Briefing on the 16th, "We will decide whether to lift the land transaction permit zones while monitoring further market conditions."
He expressed concern that lifting the regulations could trigger a so-called "shooting" phenomenon where housing prices surge rapidly.
(Photo: Yonhap News)
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