Land transaction permission zone

[Anchor]

The Seoul city government has lifted the land transaction permission zones in parts of Songpa-gu and Gangnam-gu starting from the 13th.

With the removal of the actual residence requirement, the so-called 'gap investment'—buying a house with a jeonse (lease) in place—has become possible, leading to predictions that housing prices may rise further.

Reporter Yoon Ah-rim has visited the scene to gauge the atmosphere.

[Report]

A large apartment complex in Songpa-gu with over 5,000 households.

Since the announcement of the lifting of the land transaction permission zones, inquiries about purchasing homes in this area have significantly increased.

[Kim Jun-young/Real Estate Agent: "I've been getting at least 10 inquiries every day.They want to buy a house with jeonse, and then decide on further direction later…."]

Last November, a 84 square meter apartment, which is the national standard, was sold for 2.8 billion won, but the asking price has risen to 3.2 billion won.

Homeowners are pulling their listings off the market.

[Real Estate Agent/Voice Altered: "Housing prices are rising by 100 million to 200 million won. And it seems everyone is waiting to see how the situation develops."]

[Resident of 'Regulation Lifted' Apartment: "I think it's good that I can invest my own money. I think prices might rise a bit…."]

In contrast, the neighboring complex, which is set for reconstruction, is rather quiet.

This is because it was excluded from the recent lifting of the land transaction permission zones.

[Lee Seung-ae/Resident of 'Regulation Maintained' Apartment: "I didn't have any expectations. I assumed that complexes subject to reconstruction would be exceptions."]

[Real Estate Agent/Voice Altered: "There are no sellers, and even if someone wants to sell, there aren't any buyers at the moment…."]

Over the past five years, the so-called leading complexes that have driven market prices were tied up in land transaction permission zones, yet apartment prices in Songpa-gu have risen for the 51st consecutive week.

Prices in Seocho and Gangnam-gu have also maintained a steady upward trend.

In this situation, the lifting of the land transaction permission zones could stimulate apartment prices.

[Kwon Dae-jung/Professor of Real Estate at Sogang University: "In the areas that have been lifted, the decrease in listings and increase in demand could lead to more gap investments."]

[Seo Jin-hyung/Professor of Real Estate Law at Kwangwoon University: "Currently, the real estate market is experiencing a significant contraction in buying sentiment, so the potential for long-term price increases is limited…."]

The Seoul city government has stated that it will consider re-designating land transaction permission zones if market overheating intensifies in the future.

This is KBS News, Yoon Ah-rim reporting.