Hee-ryong Won “It is difficult to change the current trend in the real estate market by loosening loan regulations”

Land, Infrastructure and Transport Minister Won Hee-ryong said in connection with the government’s loosening of home loan regulations: “It will be difficult to have the same effect as a sudden rebound in the volume of transactions of the entire market. or a change in the price flow. ”

Minister Won said in a question and answer session with reporters after announcing the results of the investigation into foreign housing speculation held at the Sejong government complex on the 28th: ​​”The four measures adopted yesterday (27) are a matter of time, and the real estate policy has not changed “.

At the 11th emergency meeting on economic livelihood chaired by President Yoon Seok-yeol on 27, the government will ease the mortgage lending (LTV) ratio in regulated areas to 50% from next year only for homeless people and single homeowners, regardless. from house prices, at 50%, he decided to revoke the regulation on mortgage loans for expensive apartments of more than 1.5 billion won in speculative and overheated neighborhoods.

At the same time, it was decided to extend the guarantee of the interim payment loan from the pre-sale price of 900 million won or less to 1.2 billion won or less, and to extend the period of disposition of the existing houses for the winners. of subscriptions in overheated speculative districts from six months to two years.

Minister Won said: “I believe that a drop in price or a decrease in transactions is inevitable due to macroeconomic conditions such as interest rates, liquidity and the money supply.”

Then, referring to the provision of construction through project financing (PF) loans and the blocking of loan windows for end users, he said: “The situation where we have become victims due to excessive regulation during the period of increasing pricing has been limited as a response to the crisis, ”he explained.

By Lee Seung-hoon, staff reporter [email protected]