[Anchor]

The government has designated Dongtan, Giheung, and Guri in Gyeonggi Province as triple-regulation zones, the same level of oversight applied to Seoul. These areas were excluded from the October 15 real estate measures. The move is seen as an attempt to curb speculative demand, as housing prices in these regions have recently surged due to factors such as the semiconductor boom.

Reporter Lee Tae-gwon has the story.

[Reporter]

The Ministry of Land, Infrastructure and Transport announced today (June 30) that it has added Dongtan District in Hwaseong, Giheung District in Yongin, and the city of Guri to the list of speculative zones and adjustment target areas.

Dongtan District in Hwaseong and Giheung District in Yongin have seen clear upward trends in housing prices due to large performance bonuses from the semiconductor boom and improved transportation infrastructure, such as the opening of the GTX-A line. Guri has also experienced rising prices driven by demand for areas near subway stations adjacent to Seoul.

These areas were excluded from the October 15 real estate measures last year, which led to a balloon effect where speculative demand shifted to these non-regulated regions.

In particular, Dongtan recorded a cumulative apartment price increase of over 11% this year, the highest in the country, while Guri and Giheung District recorded increases of 7.8% and 6.2%, respectively.

The Ministry of Land, Infrastructure and Transport explained that it designated these areas as regulated zones following a review by the Residential Policy Deliberation Committee to block speculative buying, protect actual residents, and respond to the overheating of the housing market.

Gyeonggi Province also decided to designate these areas as land transaction permit zones following a review by its Urban Planning Committee.

The designation as regulated zones will take effect starting tomorrow, while the land transaction permit zone designation will be in effect from July 5 through December 31 of next year.

Once designated as speculative zones and adjustment target areas, the Loan-to-Value (LTV) ratio for those without homes will be restricted from the existing 70% to 40%, and those who already own homes will be unable to take out new mortgage loans.

Loan limits will also be capped at 600 million won, and there will be a mandatory requirement to move into the property within six months.

In land transaction permit zones, residents are required to live in the property for two years after acquisition. Violations may result in enforcement fines or the cancellation of the permit, effectively blocking so-called gap investments, where a property is purchased with the intention of renting it out.

(Video Editing: Kim Jun-hee)