After the recent deregulation of the land transaction permit zones in Seoul’s three major districts (Gangnam, Seocho, and Songpa), housing prices have shown signs of a rapid increase, prompting financial authorities to manage household debt. They plan to monitor loan trends by region closely. On the 16th, a financial authority official stated to Yonhap News that they will be monitoring trends in new mortgage loan handling by region and will intensify the observation by checking on a weekly basis.
Financial authorities are collecting data on household loan applications and approvals from banks to monitor trends, focusing on major transaction areas such as the three Gangnam districts, Mapo, Yongsan, and Seongdong. According to the Korea Real Estate Board’s ‘National Weekly Apartment Price Trend for the Second Week of March (as of the 10th),’ apartment sale prices in the three Gangnam districts showed the largest increase since the real estate market boom in 2018.
Particularly in areas like Jamsil, Samsung, Daechi, and Cheongdam-dong—recently deregulated—the surge in house prices seems to be spreading to neighboring regions. However, in addition to the deregulation, factors such as the demand for relocation with the new school year and expectations of interest rate cuts are complex reasons for the price increase, leading authorities to adopt a watchful approach for now.
Financial Supervisory Service Governor Lee Bok-hyeon commented on the household loan trend this month, noting that it appears more stable than in February and is not a cause for significant concern. Meanwhile, in a joint meeting of relevant government departments on the 13th, the Seoul city government stated that if there is an abnormal and excessive increase in prices, they will immediately take necessary measures, such as redeclaring land transaction permit zones.