Reduction in Mortgage Limits Starting September: Will It Curb Soaring Apartment Prices in Seoul?
In response to skyrocketing apartment prices in Seoul, the government plans to reduce mortgage limits starting next month. In response to skyrocketing apartment prices in Seoul, the government plans to reduce mortgage limits starting next month. This new regulation aims to cool down the housing market, but experts believe it might not be sufficient. While transaction volumes are expected to decrease and gap investment may become more challenging, experts predict that apartment prices may continue to rise, and rent prices might soar further. The South Korean government is implementing stricter mortgage limits starting in September to address the rapidly increasing apartment prices in Seoul. This move is part of a broader effort to stabilize the housing market, which has seen a significant surge in prices. Key Changes in Mortgage Limits From September 1, the Financial Services Commission will introduce a second stage of the debt-to-service ratio (DSR) system. Under this new rule, homebuy...