Seoul pushes to lift land transaction permit system...a voice of concern in anticipation

"Review of Land Transaction Permit Areas Across Seoul..."Announcement soon"
Apartments before 2004 'classified' are breathing under deregulation
A series of maintenance support policies and deregulation...trial and error concerns

[Anchor]
The Seoul Metropolitan Government is pushing for the lifting of the land transaction permit zone.The city of

is also actively easing regulations on maintenance projects, and although areas with low business feasibility have opened a way to improve their residential environment, there are also concerns.

Reporter Kim Hyun-ah reports.

[Reporter]
In June 2020, the land transaction permit zones designated in Gangnam-gu and Songpa-gu, Seoul, are expected to be lifted.

Seoul Mayor Oh Se-hoon weighed in on the lifting of land transaction permits for residential areas across Seoul, saying the real estate market has stabilized downward and transactions have plummeted.

[Se-Hoon Oh / Seoul Mayor (last 14th): The land transaction permit, which was selected at a special time, is now being actively considered to be abolished. If you wait a little bit....]

Two days after that, when a large-scale maintenance project was carried out, the upper part of the building could be conditionally released into the park,
We are also actively seeking to expand the floor area ratio transfer system to buy and sell the
floor area ratio, temporarily easing the floor area ratio, and reducing the burden of donation.

Considering the introduction of the business feasibility correction factor announced last year and the easing of the public contribution ratio,

The threshold for policy constraints for the Seoul area maintenance project has been significantly lowered.

Old apartments built before classification in 2004 will inevitably have poor business feasibility under the current regulations, but it is evaluated that the deregulation will give you a break.

[Kim Hyun-soo / Dankook University Professor of Urban Planning and Real Estate] Aren't construction costs rising and the floor area ratio is already full? In that sense, it makes the maintenance business possible.... It means that speed control is necessary, three-dimensional complexing and such attempts (intermediate cutting) are actually necessary.]

However, there is still a question mark whether the deregulation will lead to actual maintenance activation and supply.

[Yoon Ji-hae / Real Estate R114 Research Team Leader: Construction cost issues, financing issues, business improvement issues, etc. do not have to be done by local governments.]

In addition, as new institutions and deregulation measures pour in at once, there are voices concerned about the confusion in the real estate market caused by trial and error.

I'm Kim Hyunah of YTN.