Dongtan, Giheung, Guri Designated as Regulated Real Estate Zones Amid Price Surge

Dongtan, Giheung, and Guri in Gyeonggi Province, areas that have recently seen sharp increases in housing prices, are now designated as regulated zones and land transaction permit areas. The government's move comes after housing prices in these regions surged due to a combination of factors, including increased liquidity from booming semiconductor and stock markets, and a 'balloon effect' where buyers shifted to non-regulated areas. The Ministry of Land, Infrastructure, and Transport announced on June 30 that these three Gyeonggi areas would be newly designated as regulated zones and land transaction permit areas. This expands the total number of regulated areas in Gyeonggi Province from 12 to 15, in addition to Seoul's entire region. The new regulations will take effect on July 1, with land transaction permit areas designated from July 5, 2024, until December 31, 2027. Within regulated zones, the loan-to-value (LTV) ratio for homeowners without property will be tightened from 70% to 40%. Those who already own property will face an LTV of 0%, preventing them from obtaining housing loans. Furthermore, capital gains taxes for multiple homeowners will be increased by up to 30 percentage points. For land transaction permit areas, restrictions will apply to the acquisition of new apartments from the date of acquisition.