Seoul has been practically excluded for the second year from the government's key real estate policy known as the "urban regeneration new deal" program.

A special government committee on urban regeneration on Friday selected 99 sites for its 2018 New Deal program, only seven small-scale projects of which are located in Seoul.

This is because new development projects can further destabilize home prices in the capital city. Almost all areas in Seoul are already designated as an overheated speculation zone following a sharp rise in housing costs in recent days.

Several commercial districts and marketplaces in Seoul were considered as candidates for large-scale regeneration but they were not selected. 

Home prices in Seoul have been rapidly rising ever since Mayor Park Won-soon announced a plan to develop the Yeouido and Yongsan areas in Seoul. 

This plan has now been postponed.