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Korean government steps in with tough regulations to curb Seoul’s overheating property prices

The South Korean government will add more anti-speculation zones in Seoul, which will be subject to tougher regulations

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According to the latest data by the Korea Appraisal Board, prices of Seoul flats rose 0.37 per cent from the previous week, marking the steepest jump in 30 weeks. Photo: Bloomberg

As Seoul’s housing market shows signs of overheating, the government is renewing its fight against property speculation by increasing taxes and earmarking anti-speculation zones in South Korea’s capital.

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Flat prices in South Korea’s capital have been showing signs of stabilising following the implementation of heavy capital gains taxes on owners of multiple homes starting in April as well as a property tax hike announced in July.

However, prices have been rising through the roof across the city following mayor Park Won-soon’s announcement of development plans.

At a meeting last Thursday presided over by Kim Dong-yeon, the economy and finance minister, the government decided to add more anti-speculation zones in Seoul, which will be subject to tougher regulations.

Currently, the city’s upscale southern districts of Gangnam-gu and Songpa-gu are designated as anti-speculation zones, as are Mapo-gu, Yongsan-gu, Seongdong-gu, Yeongdeungpo-gu and Nowon-gu.

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Market observers expect the districts of Jongno-gu, Jung-gu, Dongdaemun-gu and Dongjak-gu, which have seen steep rises but are not designated as such so far, are likely to be subject to the strict restrictions.

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