People in their 30s who are hesitant about lending regulations,
The number of homeowners in their 40s is increasing
Seoul real estate loan regulations / Source: Yonhap News
“People like us can’t even dream of buying an apartment in the metropolitan area.” “I heard that lending regulations will become more stringent by the end of the year. What should we do now?”
The government’s strengthening of lending regulations is causing major changes in the apartment transaction market.
According to data from the Korea Real Estate Agency, people in their 40s accounted for the highest proportion of apartment purchases nationwide in September, at 26.9%, ahead of people in their 30s (26.6%).
After 6 months, people in their 40s surpassed people in their 30s again, and this is because the age group under 30s, which is highly dependent on finance such as home mortgage loans, was more affected by loan regulations.
Seoul real estate loan regulations / Source: Yonhap News
In particular, since September, commercial banks have raised the interest rates on mortgage loans and jeonse loans and even implemented lending restrictions for those who own their own homes, further reducing housing transactions for those in their 30s or younger.
In addition, the government further strengthened regulations by reducing the stepping stone loan limit in the metropolitan area.
In order to stably manage the housing market and household debt, the Ministry of Land, Infrastructure and Transport decided to apply a method of calculating the loan amount excluding the highest priority repayment when taking stepping stone loans for apartments in the metropolitan area.
Through this, the loan amount available for purchasing an apartment in the metropolitan area will be reduced by up to 50 million won.
Seoul real estate loan regulations / Source: Yonhap News
Although the Stepping Stone Loan is a policy loan for actual consumers, it has been criticized for using it to serially move to upper-class areas, which has contributed to the rise in housing prices in popular areas of Seoul. The new plan will only apply to apartments in the metropolitan area starting next month.
Even if you tighten your purse strings, the place to go will go up… Real estate with increased transactions
Despite these regulations, there were still many upward transactions in popular areas such as Gangnam, Mapo, and Songpa during September and October, with prices rising from the previous time.
In particular, the price of an apartment in Daechi-dong, Gangnam-gu increased by about 200 million won between September and October from its July transaction price, and an apartment in Mapo-gu also increased by nearly 100 million won during the same period.
Seoul real estate loan regulations / Source: News 1
On the other hand, non-Gangnam areas of Seoul, Jungnang, Geumcheon, and Nowon-gu, which are heavily influenced by loan regulations, had relatively more downward transactions.
Last month, the Bank of Korea lowered the base interest rate, but commercial banks are raising lending interest rates to manage household debt, so it is unclear whether the upward trend will continue in the future.
The government predicts that the loan amount will decrease by about 3 trillion won next year due to this reduction in the stepping stone loan limit, and that the annual loan amount will be reduced by 5 trillion won from the next year.
The Ministry of Land, Infrastructure and Transport announced that it will stably manage stepping stone loans through this measure and continue to review customized management plans that reflect the loan accessibility of actual consumers.
