From Today, Land Transaction Permit System Enforced in 12 Locations in Seoul and Gyeonggi Province... Free Buying and Selling Restricted

[Financial News] Starting on the 20th, the Land Transaction Permit System will be fully implemented across all of Seoul and in 12 regions of Gyeonggi Province. This measure follows the 'Housing Market Stabilization Measures' announced by the government on the 15th, aiming to curb the recent surge in apartment prices along the Han River in Seoul and the accompanying rise in some areas of Gyeonggi Province at an early stage.
The Ministry of Land, Infrastructure and Transport (MOLIT) stated, "All 25 districts of Seoul and 12 regions in Gyeonggi Province have been designated as Land Transaction Permit System zones, effective from October 20." The designation will remain in effect until December 31, 2026. According to the government, this preemptive action is intended to prevent the overheating of the housing market from spreading to neighboring areas and to establish a transaction order centered on genuine demand.
The designated permit zones include all of Seoul’s 25 districts and 12 locations in Gyeonggi Province: Gwacheon, Gwangmyeong, Seongnam (Bundang, Sujeong, Jungwon), Suwon (Yeongtong, Jangan, Paldal), Dongan District in Anyang, Suji District in Yongin, Uiwang, and Hanam-si. Previously, the Land Transaction Permit System had already been applied to Gangnam District, Seocho District, Songpa District, and Yongsan since March, and it has now been expanded to the remaining districts.
The permit requirement applies to 'apartments and row or multiplex housing complexes that include at least one apartment building within the same complex.' Not only apartments but also row and multiplex housing within the same complex must obtain approval from the local government before any transaction. Contracts made without such approval are invalid. After obtaining a permit, the buyer must reside in the property for two years from the date of acquisition. Violations may result in administrative fines or revocation of the permit.
Along with the Land Transaction Permit System, all of Seoul has also been newly designated as both an Area Subject to Adjustment and a Speculative Overheating District. In addition to the existing four districts (Gangnam District, Seocho District, Songpa District, Yongsan), the remaining 21 districts of Seoul and 12 regions in Gyeonggi Province, including Gwacheon and Gwangmyeong, have been added. As a result, the Loan-to-Value ratio (LTV) for housing loans in all of Seoul is now limited to 40%. The maximum loan amount for home purchases is set at 600 million won for homes valued at 1.5 billion won or less, 400 million won for homes between 1.5 and 2.5 billion won, and 200 million won for homes exceeding 2.5 billion won.
en1302@fnnews.com Jang In-seo Reporter