SEOUL (Reuters) – South Korea said on Wednesday it will tighten property market trading rules in wealthy parts of Seoul to stem any speculative transactions that have been boosting home prices in the country’s capital.
The fresh measures target some of the wealthiest districts of Seoul including Gangnam, Seocho, Songpa and Yongsan, where any apartment transactions will need a prior permit from the local council until Sept. 30 this year, the land ministry said in a statement.
The council can prohibit apartment transactions unless the buyer intends to make the property their primary place of residence.
The move reverses Seoul’s decision in February to exempt parts of Seoul from the land transaction permit zone, which saw both sales and rent prices starting to increase after the measure despite tighter mortgage curbs and sluggish domestic demand in general.
Wednesday’s statement also said mortgage rules would be tightened further at local banks, especially for people owning multiple homes.
Median apartment prices in Seoul have doubled in the past five years and exceeded 1 billion won ($689,085) for the first time last year, pressuring the government to release extra homes in the metropolitan Seoul area in a bid to ease demand.
($1 = 1,451.2000 won)
(Reporting by Cynthia Kim; Editing by Ed Davies)
