Real estate transactions are increasing with low interest rates
and ‘last-minute demand’ due to stress DSR 2nd phase ,
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, ‘[Seoul Economy] ‘,
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, ‘Household loans from major banks surged by more than 3.6 trillion won just this month. This is due to the increasing real estate transactions and the drop in market interest rates, which has led to a sudden influx of last-minute demand as financial authorities postponed the implementation of the stress DSR 2nd phase to September. Although financial authorities conducted on-site inspections at banks this month, it seems difficult to avoid criticism of their failure in managing household loans.’,
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, ‘According to the financial industry on the 21st, the outstanding balance of household loans from the 5 major banks (KB Kookmin, Shinhan, Hana, Woori, NH Nonghyup Bank) as of the 18th of this month exceeded 712 trillion 184.1 billion won, an increase of 3 trillion 611.8 billion won compared to the end of June (708 trillion 572.3 billion won).’,
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, ‘Household loans from the 5 major banks surged by 5 trillion 341.5 billion won in just one month in June, marking the largest increase in nearly 2 years and 11 months since July 2021 (+6 trillion 200 billion won), and this upward trend continues this month as well. Home mortgage loans led the increase in household loans. The outstanding balance of household loans from these banks increased by 3 trillion 799.1 billion won from 552 trillion 152.6 billion won at the end of last month to 555 trillion 951.7 billion won as of the 18th of this month.’,
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, ‘The reason for the continued increase in household loans is attributed to the growing volume of housing transactions in the Seoul metropolitan area, coupled with rising real estate prices leading to a recovery in buying sentiment. It is also analyzed that there is a simultaneous rush of demand from those trying to take advantage of the “last chance” before the implementation of the stress DSR regulations is tightened. Jo Suyeon, a senior specialist at KB Kookmin Bank’s WM Customer Analysis Department, stated, “The expected rate cut in interest rates by the end of the year, along with the decline in deposit interest rates and the announced tightening of housing loan regulations, are playing a significant role in the recent rebound of residential property prices in the Seoul metropolitan area.”‘,
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, ‘When the financial authorities found the increase in household loans worrisome, they started on-site inspections of the 5 major banks and KakaoBank from the 15th. However, there are criticisms that the financial authorities allowed the increase in household loans to accumulate and only conducted inspections belatedly after suddenly postponing the implementation of the stress DSR 2nd phase.’,
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, “In particular, it was revealed that the outstanding balance of household loans from the 5 major banks at the end of June when the postponement was announced had already exceeded the annual household loan management target. According to data received from the office of Rep. Cheon Junho of the Democratic Party, a member of the National Assembly’s Financial and Economic Committee, the total annual increase target for household loans at the 5 major banks this year is 12.5 trillion won. The total increase in household loans at the 5 major banks as of the end of June reached 16 trillion 162.9 billion won, exceeding the annual household loan increase target in just six months. Considering that the GDP growth rate forecast has increased compared to the beginning of the year, it is a situation that requires management even with the consideration of the GDP growth rate being higher than previously expected.”,
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