Gov't to Ease Real Estate Regulations Nationwide

      September 22, 2022 11:32

      The government will ease real estate regulations that were imposed by the previous administration that make it more difficult to get housing loans for certain areas designated speculation zones. 
      The move comes at the request of provincial governments after surging interest rates have paralyzed the residential property market. 
      The Ministry of Land, Infrastructure and Transport on Wednesday announced that no provincial regions except Sejong administrative city are now considered speculation zones, while "areas under monitoring" for possible speculation will be reduced from 101 to just 41.  
      The government started designating areas as potential speculative zones in November 2016 to tame prices. But now nationwide prices are falling amid record-low demand and the housing market is in danger of atrophying entirely. 
      A view of apartment complexes in Haeundae, Busan on Wednesday /Yonhap
      Apartments in the designated areas are subject to a maximum 50-percent limit on the loan-to-value ratio when taking out housing loans, while owners of multiple homes in those regions pay additional taxes.
      In Gyeonggi Province, five cities -- Anseong, Dongducheon, Paju, Pyeongtaek and Yangju -- will be removed from the list of speculative zones as well as 14 districts in Busan including Haeundae and Daegu's Suseong.
      The government will reclassify three districts of Incheon and Sejong from speculative zones to areas under monitoring. 
      The ministry said, "We decided there was a need to ease regulations because of declining home prices, plummeting transaction volume and a rise in the number of unsold houses in provincial regions." 
      Market analyst Koh Jong-hwan said, "In view of current market sentiment and other variables such as interest rates, there is little chance of apartment prices surging over the short term in areas where restrictions have been lifted."  
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