The government designated three areas in Gyeonggi Province as speculative zones on Tuesday to tighten lending rules after sharp rises in home prices. The measures take effect Wednesday.
The Ministry of Land, Infrastructure and Transport said it made the designations during a residential policy deliberation committee meeting held Monday. The step aims to curb speculative buying, protect genuine homebuyers and cool an overheating housing market.
Property prices in Dongtan and Giheung rose amid expectations of further gains, fueled by windfall bonuses at Samsung Electronics Co. and better transport links near the chipmaker’s facilities. Prices in Guri also climbed due to its proximity to Seoul’s Gangnam business district. Home prices in Dongtan rose 11.38 percent as of the fourth week of June.
The new rules apply from Wednesday until Dec. 31, 2027. A mortgage ceiling of 600 million won will cover homes priced at 1.5 billion won or less. Buyers must live in the area for at least two years and cannot use jeonse deposits to purchase homes.
