Loan curbs slow Seoul price rise

[Anchor]

With the announcement of high-intensity loan regulations, the increase in apartment prices in Seoul has decreased for the first time in eight weeks.

However, reconstruction complexes are still continuing to set new price records.

The government has decided to crack down strongly on cases of circumventing regulations, such as buying homes with business loans.

Reporter Yoon Ah-rim has the story.

[Report]

An apartment complex in Yangcheon-gu, Seoul, which passed safety inspections last year and is currently undergoing reconstruction.

This month, a 59 square meter unit was traded for 1.8 billion won, reaching a record high.

This is an increase of about 400 million won compared to transactions three months ago.

A rally of new record prices is continuing, particularly in nearby reconstruction complexes.

[Mr. A/Real estate agent in Yangcheon-gu, Seoul/Voice altered: "There are still buyers waiting... If one sells for 1.6 billion won, the next goes for 1.7 billion. Prices have jumped 500 to 600 million won in just a few months."]

This means that the high-intensity loan regulations are not affecting apartment prices in this area.

[Mr. B/Real estate agent in Yangcheon-gu, Seoul/Voice altered: "Prices will likely stay strong for now. There are no listings—no one wants to sell cheap."]

Today (7.3), it was announced that apartment prices in Seoul rose by 0.4% last week.

It marked the 22nd consecutive week of increases, but the pace slowed for the first time in eight weeks.

While increases in areas like Gangnam and Mapo-Yongsan-Seongdong have dropped by more than 0.1 percentage points, prices in Yangcheon-gu rose 0.6%. Other districts, including Yeongdeungpo, Dobong, and Nowon, also saw larger gains.

[Yoon Soo-min / Real Estate Specialist, Nonghyup Financial Group: "We’re seeing outer-Seoul new apartments closing the gap with rising prices of Gangnam properties."]

The government will strengthen on-site inspections of the real estate market.

The areas subject to inspection will be expanded from the existing 88 complexes with significant price increases to include all of Seoul and areas like Gyeonggi, Gwacheon, and Bundang.

Various circumventions, such as buying homes with business loans, will also be subject to intensive crackdowns.

There are plans for a comprehensive investigation into cases suspected of being illegal, such as those with very low self-funding ratios.

This is KBS News, Yoon Ah-rim.