Concerns rise over loan rules

[Anchor]

The government's sudden announcement of ultra-strict loan regulations is showing signs of impacting the rental market in the metropolitan area.

Currently, rental properties are scarce, and it is highly likely that finding a rental will become even more difficult during the fall moving season.

Reporter Lee Se-jung has the story.

[Report]

This is a woman in her 30s who is getting married this fall.

She is looking for a rental house in Yongin, Gyeonggi Province, but has not been able to find a suitable property.

The burden of monthly rent is too great, and she is worried.

[Kim Seul-ki/30s Bride-to-be: "I've been looking for about two months, but there are no rental properties available. I'm trying to find something close to my family home, but there are so few options that I'm considering changing the area altogether."]

The situation in Seoul is similar.

This apartment complex in Songpa-gu, which has over 900 units, currently has not a single rental property available.

Nearby, an 800-unit apartment complex also has very few listings.

Prices have risen significantly as well.

[Real Estate Agent in Songpa-gu, Seoul/Voice Altered: "There haven't been any properties available for quite some time, and there is a high demand for rentals right now. There are many reconstruction relocation complexes nearby, and because people are using the right to request renewal of rental contracts, rental properties are not coming out."]

The number of rental properties in the metropolitan area has decreased by over 13,000 in just six months, now totaling around 54,000.

The basic rental period has been extended to four years due to the right to request contract renewal, and the impact of rental fraud in villas has led to increased demand for apartments.

Additionally, the implementation of strict loan regulations has made it virtually impossible to engage in 'gap investment'—buying properties with rental income—resulting in an influx of demand from those who have given up on purchasing, which is expected to increase the number of people looking for rentals.

[Yoon Ji-hae/Head of Research Lab at Real Estate R114: "The balloon effect from the loan regulations is actually causing those who have given up on buying to enter the rental market. The biggest concern for the second half of the year is the potential rise or instability in rental prices."]

The number of new apartments scheduled to be available in the metropolitan area in the second half of the year is expected to be about 40% lower than last year, creating a supply cliff.

There are concerns that a rental crisis will occur in the metropolitan area during the fall moving season.

This is KBS News, Lee Se-jung.