Tightened loan curbs expected to help cool overheated Seoul housing market: experts

The financial authorities' latest measures to restrict ballooning household debt are expected to help cool down the overheated housing market in Seoul's sought-out areas, experts said Friday. The Financial Services Commission (FSC) announced earlier in the day that all local lenders will be forced to sharply lower their household lending, while home-backed loans for home purchases in the capital area will be capped at 600 million won (442,000), starting next week. The unprecedented move comes as home prices in Seoul, especially in the affluent Gangnam area and the central districts of Mapo, Yongsan and Seongdong, have gained traction, which has again led to a rise in household debts. "Homes that require large amounts of borrowing will be affected the most," said Park Won-gap, a real estate analyst at KB Kookmin Bank. "Targeted areas will likely experience a cooling-off period, although the measures may only slow the pace of price increases rather than reversing them." He added that the market in the second half of the year could see price gains in previously unpopular districts, narrowinWeiter zum vollständigen Artikel bei Korea Times Weiter zum vollständigen Artikel bei Korea Times