Sudden increase in house prices Busan and Gimpo will be designated as a target area for adaptation … The Ministry of Land, Infrastructure and Transport is “monitoring”

Input 2020.11.12 17:24

Busan Haeundae-gu, August-October 4.94% increase
Gimpo, Gyeonggi, jumped close to 4% this month

The Ministry of Land, Infrastructure and Transport is closely examining some unregulated areas of metropolitan areas and local metropolitan cities, where housing prices have recently increased. Consequently, the focus is on the release of a new regulatory sheet for unregulated areas such as Busan and Gimpo, Gyeonggi.

According to the Korea Appraisal Board’s monthly rate of rise in house prices statistics in Haeundae-gu, Busan, house prices rose 4.94% in the past three months to last October. This is the highest rate of increase among unregulated areas. In Suyeong-gu and Dongnae-gu, house prices also increased by 2.65% and 2.58%. Haeundae-gu also grew 0.84% ​​and 1.09% respectively in the first and second week of this month, while Suyeong-gu grew 0.61% and 1.13% respectively. Busan was withdrawn from the adjustment area in November last year and restrictions on loans and taxes were relaxed.

House prices also fluctuate in unregulated areas in the Chungcheong area adjacent to regulated areas such as Sejong and Daejeon. Gyeryong-si, Chungnam, near Yuseong-gu, Daejeon, has seen a 3.34% increase in house prices over the past three months. This is the second rate of increase among unregulated areas after Haeundae in Busan. Cheonan City’s Gongju City and Seobuk-gu were also up 3.07% and 2.78% respectively. These areas were areas that avoided regulations when Daejeon and Cheongju were grouped as superheated dump areas and areas subject to change. These areas appear to be affected by the surge in house prices in the city of Sejong and Yuseong-gu, Daejeon, due to the problem of relocating the capital. Over the past three months, Sejong City has increased by 13.42% and Daejeon Yuseong-gu has increased by 5.16%.

Housing prices in Gimpo, Gyeonggi-do have soared. Unlike other metropolitan areas, Gimpo has avoided designating regulated areas. The rate of increase in house prices over the past three months was only 1.16%, but the November weekly survey showed the highest rate of increase in the country, with 1.94% in the first week and 1.91% in the second week.

When the government reviews the designation of the regulated areas, it is known that the rate of increase in house prices over the past three months is the main target. The possibility of designation as a regulated area increases if other conditions such as the competition rate of subscriptions, the resale volume of sales rights and the housing supply rate are selected first after selecting a place where the rate of price increase of homes exceeds 1.3 times the region’s inflation rate in the past three months. The areas that meet the requirements are decided as regulated areas by the Resolving Committee on Housing Policy after consultation with the relevant ministries and local administrations such as the Ministry of Land, Infrastructure and Transport, the Ministry of Strategy and Finance, Financial Committee . When designated as an adjustment target area, loan rules apply, such as 50% for sections with a mortgage loan ratio (LTV) of less than 900 million won and 30% for sections above 900 million won. won. Also, when buying a home, you need to provide a financing plan to reveal how the purchase cost has been prepared.

Earlier on July 10, Minister of Land, Infrastructure and Transport Kim Hyun-mi told the National Assembly Budget and Settlements Committee: “As the regulated areas have been expanded with the July 10 measures , speculative capitals are shifting to local metropolitan cities to avoid these areas. ”He said. An official from the Ministry of Territory, Infrastructure and Transport said: “Monitoring continues”.