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Chip Boom Drives Up Housing Prices, South Korea Tightens Real Estate Controls Around Semiconductor Hubs

MarsBitNews
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Mars Finance News, June 30, according to a Bloomberg report, the South Korean government will impose stricter real estate restrictions on some areas outside Seoul that are close to semiconductor hubs. Previously, the semiconductor industry boom had driven a sharp rise in local home prices and raised concerns about speculative property purchases. The Ministry of Land, Infrastructure and Transport of South Korea said the government will designate Hwaseong City’s Dongtan area, Yongin City’s Qixing area, and Guri City as speculative zones, and will implement stricter loan restrictions starting July 1. The three areas will also be included in requirements for land transaction permits starting July 5. The Ministry of Land, Infrastructure and Transport said the measures are intended to curb speculative purchases and protect the needs of genuine homebuyers, while strengthening monitoring of the housing market and accelerating housing supply plans. As the latest measures are introduced, apartment prices in Seoul have been rising for 73 consecutive weeks, showing that the government’s previous efforts to cool the real estate market have had limited impact. After the new rules take effect, 25 districts in Seoul and 15 areas in Gyeonggi Province will be designated as restricted zones.
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