South Korea to deregulate mortgages from December 1

On Thursday, the government said that first-time homebuyers in Seoul can borrow up to 50% of property values ​​from the low 20% currently in Seoul.

This change will take effect from December 1st. This is because the government has brought forward deregulation from next year to support a soft landing in the real estate market, which is currently seen as having a negative impact on economic growth.

A five-year real estate boom in Asia’s fourth-largest economy has run out of steam, with interest rate hikes totaling 250 basis points since last August hurting the market.

The number of condominium transactions in Seoul in September was 615, the lowest since the statistics began in 2006.

(Reporting by Cynthia Kim; Editing by Sandra Muller)

Cynthia Kim

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