South Korea Tightens Housing Regulations in Hwaseong, Yongin, and Guri to Curb Speculation

South Korea has imposed new real estate regulations on key areas experiencing rapid housing price increases. The Ministry of Land, Infrastructure, and Transport announced on June 30 that Hwaseong's Dongtan district, Yongin's Giheung district, and Guri city will be designated as speculative overheating zones and adjustment target areas, effective July 1.

These designations will lead to stricter mortgage lending rules, higher acquisition taxes for owners of multiple homes, and tighter subscription regulations. The Gyeonggi provincial government will further reinforce these measures by designating the areas as land transaction permit zones from July 5 to December 31, 2027, aiming to block speculative demand.

The government cited rising housing prices and concerns over speculative inflows as reasons for the new measures. Dongtan and Giheung have seen price surges driven by expectations of expanded semiconductor industry investment and improved transportation networks, including the GTX-A line. Guri, due to its proximity to Seoul, has experienced a spillover effect, leading to sustained price increases.

Official data shows significant monthly housing price increases in these regions, with Hwaseong Dongtan's price fluctuation rate rising from 0.78% in February to 1.57% in May. Yongin Giheung recorded a 0.95% increase, and Guri saw a 1.15% rise.

The government stated that these actions are intended to prevent speculative buying and protect genuine homebuyers. It also pledged to strengthen monitoring of market-disrupting activities like unusual transactions and price collusion, while continuing to promote housing supply expansion through various plans and support centers.

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This measure is intended to block speculative buying and protect genuine homebuyers.