South Korea imposes additional mortgage curbs for homebuyers in Seoul

[SEOUL] South Korea announced on Wednesday (Oct 15) additional mortgage curbs for first-time homebuyers in the capital Seoul and nearby regions after seeing an upswing in apartment prices.

Effective immediately, first-time homebuyers will be able to borrow only 40 per cent of the property price as their mortgage – down from 70 per cent – further reducing the scope of borrowing in a bid to address worsening home affordability in Seoul.

The government in a statement also said it was capping the maximum borrowing amount at 600 million won (S$545,400), even if the purchaser can afford more with their income.

Wednesday’s curb is the third measure put in place since President Lee Jae Myung began his term in June. The price-to-income ratio of an apartment in Seoul sits at 21.3, above 19.4 for London and 12.4 for Sydney. REUTERS