Govt. Lifts Real Estate Sales Restrictions on '3 Gangnam Districts'

The Korean government has lifted restrictions on property sales in the country's most expensive real estate market,the three southern Seoul districts of Gangnam, Seocho, and Songpa.
The government has often viewed the three upscale districts as a barometer of the nation's property trends and surging prices there were blamed for a real estate bubble in Seoul in the 2000s.
In response, the former Roh Moo-hyun administration imposed the sales restrictions to prevent speculation.
Government officials said on Thursday, that the restrictions were being lifted to boost the now-sluggish property market and meet growing demand for housing in Seoul.
The upper limit of 'loan to value ratio' and 'debt to income ratio' used to determine the size of available mortgages will be raised from 40 to 50 percent, the same as in other areas in the capital, and additional sales taxes will NOT be imposed on people who own three or more houses in the districts.
And those with just one house will only have to own a house for only 2 years, instead of the current 3 years, in order to avoid property transaction taxes.
However, not all are welcoming the new measures.
Some experts are voicing concern that if the government continues to try to forcibly boost the market, instead of just letting it go through natural adjustments, the revised policies will only create another housing bubble in Seoul.
Eoh Jin-joo, Arirang News.