Restrictions On Land Trade In Pangyo To Go Into Effect Early Next Month

`Pangyo New City` in the area of Pangyo, Seongnam City, Kyonggi, and 12 million pyong of land in the area of Seongnam City, Gungnae Dong, Daejang Dong, and Gumgok will be designated as the authorized area for land trade on July 10. Therefore, speculative investment in real estate is to be strictly regulated.

A new subway line called `New Bundang` will be constructed linking Yongsan, Seoul and Bundang New City through Kangnam with private funds to solve the problem of traffic jam following the development of the Pangyo New City. Therefore, the sales of apartments will start in the latter half of 2005 (originally planned in 2004), enabling residents to start moving in from January 2009 (originally planned in 2007).

The government and the ruling Millennium Democratic Party yesterday finalized a `development plan for the Pangyo area`. Of the 2.8 million yong of land to be developed, the plan calls for the allocation of one million pyong (one pyong equals 3.3 square meters) to housing construction, a venture complex, a green tract of land, roads, and a commercial land. In the one million pyong of land allocated for housing construction, 13,800 units of apartments for a population of 59,000), 2,300 units of flats (50 pyong style), and 3,600 units of individual houses (70-150 pyong style) will be constructed.

Although the government originally allocated 10,000 pyong of land for a venture complex, it decided to consider expanding the land by the request of the ruling party.

Oh Jang-Sup Minister of Construction and Transportation said, ``Although the Ministry tries to keep the plan, the government will consider creating another venture complex or increasing the capacity rate of the complex in the Pangyo New City area if the expansion of the venture complex is indispensable.``

Ministry of Construction and Transportation has decide to designate 9 million pyong of land in the Pangyo New City and southern area of the Pangyo New City as the authorized area for land trade in order to prevent the speculative investment in real estate in the Pangyo New City and its outskirts. If the land is designated as the authorized area for land trade, the land trade is strictly regulated to the extent that a permission from the heads of the city-district-ku is required when selling and purchasing land. Ministry of Construction and Transportation has decided to construct a 26-kilometer subway line called `New Bundang`, which will link Yongsan, Seoul and Bundang through Kangnam. The preceding plan is to complete the construction of a 17-kilometer line linking Kangnam and Bundang by 2008 with private funds. The government also set up the principle of constructing a transportation network first before residents move in and decided to delay the time to sell apartments and to move in.

Hwang Jae-Seong jsonhng@donga.com