Anchor: Starting Monday, those wishing to purchase apartments anywhere in Seoul, as well as other zones labeled "speculative areas," must intend to live full-time in their prospective new homes. The government on Wednesday classified an additional 21 areas of Seoul as speculative zones, meaning home-buying regulations that previously only applied to four districts now restrict the entire city. It also introduced tougher mortgage policies in its effort to contain skyrocketing apartment prices.
Kim Bum-soo has more.

Report: Apartment prices in Seoul rose for a 35th consecutive week at the end of September, with growth accelerating from the summer months despite the government's efforts to curb demand.

The finance minister and land minister on Wednesday introduced another real estate policy package in an attempt to contain the out-of-control situation.

[Sound bite: Deputy Prime Minister and Finance Minister Koo Yoon-cheol (Korean-English)]
“First, we will expand the designation of land transaction permit zones and regulated areas to curb speculative demand. All of Seoul and 12 areas of Gyeonggi Province, including Gwacheon and Seongnam, will be designated as 'speculative overheated areas' subject to land transaction permits."

That means that starting Thursday, those wishing to purchase property anywhere in Seoul or other speculative areas must prove that they intend to live in those homes to receive approval.

[Sound bite: Deputy Prime Minister and Finance Minister Koo Yoon-cheol (Korean-English)]
"We will lower the mortgage loan limit to 400 million won for homes valued between one-point-five billion won and two-point-five billion won, and to 200 million won for homes valued over two-point-five billion won. We will also raise the stress DSR[debt service ratio] and apply the DSR to jeonse[deposit-based rent] loans in the metropolitan area and regulated areas."

The announcement marks the Lee Jae Myung government's third attempt to rein in housing prices. The chief of the main opposition party says it's bound to fail.

[Sound bite: People Power Party Chairman Rep. Jang Dong-hyeok (Korean-English)]
"Housing prices will never be controlled by blind regulations that only target demand without addressing supply. Housing stability will never be achieved with policies that favor foreigners while discriminating against Koreans. The specter of another real estate boom looms large."

Apartment prices in Seoul have been on a steep rise despite the government's pledges to keep them under control.

According to real estate analysts, the average price of a 59-square-meter unit in the capital city rose around eight percent in September from the same month of last year to surpass one billion won, or more than 700-thousand U.S. dollars.

The average price of such a unit in Seoul's affluent Gangnam District broke two billion won, or about one-point-five million dollars.

The government on Wednesday also hinted at possibly raising real estate-related taxes.
Kim Bum-soo, KBS World Radio News.