South Korea Imposes Stricter Property Rules to Curb Speculative Buying in Seoul

South Korea is tightening real estate regulations in Seoul’s wealthiest districts to curb speculative transactions that have been driving up home prices. The government announced that starting Wednesday, apartment transactions in Gangnam, Seocho, Songpa, and Yongsan will require prior approval from local councils until September 30. Buyers must prove they intend to use the property as their primary residence, or transactions may be denied.

This move reverses a February decision to ease restrictions in some areas, which led to a rise in home sales and rental prices despite tighter mortgage rules and weak domestic demand. The government is now strengthening mortgage regulations, particularly for multi-homeowners, to further control market overheating.

Seoul’s property market has seen soaring prices, with median apartment values doubling over the past five years, surpassing 1 billion won ($689,085) last year. The surge has put pressure on policymakers to introduce measures to stabilize housing affordability.

By enforcing stricter trading and lending rules, the government aims to rein in speculative investments and ease demand pressures in the capital.