The government is reviving a controversial system to cap presale prices of privately built apartments and has decided to apply it first to more than a two dozen areas in Seoul, including many posh neighborhoods.
The Ministry of Land, Infrastructure and Transport announced on Wednesday that 27 neighborhoods across eight districts in Seoul will first be subject to the "presale price cap" scheme.
Nearly all but five are concentrated in the southern districts of Gangnam, Seocho and Songpa along with eastern Gangdong District, where real estate investment has been frequently overheated in recent years.
The other five targeted neighborhoods are located in the Yongsan, Mapo and Yeongdeungpo districts in central and western Seoul.
Under the system, presale prices of newly-built apartments are determined based on land prices and construction costs and require approval from municipal governments.
It as first introduced by the Roh Moo-hyun administration in 2007 to clamp down on soaring housing prices, but the system was virtually scrapped in 2015 by the Park Geun-hye government to boost the economy. Since then, the scheme had only been applied to public land development.
[Photo : YONHAP News]