The average amount borrowed by people who took out a new mortgage loan in the first quarter was the highest since statistics began in 2013, the Bank of Korea said on the 22nd. The rise was pronounced in Gyeonggi and Incheon, led by people in their 30s. Even as the financial authorities roll out tough household loan control measures in succession, homebuying demand is expanding, centered on the Seoul metropolitan area.
According to the Bank of Korea's "first-quarter borrower-by-household debt statistics," the per-capita mortgage loan based on new origination was 229.39 million won, up 16.53 million won (7.8%) from the previous quarter. The per-capita outstanding mortgage loan balance was 160.06 million won, up 1.79 million won from the previous quarter.
By age, people in their 30s borrowed the most at 289.9 million won, up 34.57 million won from the previous quarter. Their share of the total was also the largest at 41.4%. People in their 40s borrowed 245.14 million won, up 12.03 million won. People in their 50s borrowed 176.22 million won, down 5.53 million won, and those 60 and older borrowed 143.62 million won, up 5.07 million won.
By region, mortgage loans in the Seoul metropolitan area were the highest at 274.56 million won. Of that, Seoul stood at 332.05 million won, increasing by only about 4 million won from the previous quarter, while Gyeonggi and Incheon rose to 246.97 million won, up by more than 40 million won from the previous quarter. The share of the Seoul metropolitan area in new mortgage loans exceeded half at 57.6%.
A Bank of Korea official said, "As the grace period for heavier taxation on capital gains from multiple-home owners ended on May 10, the effect of more listings coming to market likely had an impact," adding, "An increase in transactions of mid- to low-priced dwellings in Incheon and Gyeonggi also played a role."
As of the end of March, the overall average amount of new household loans, including mortgage loans, was 35.42 million won, up 990,000 won from the previous quarter. The household outstanding loan balance during the same period rose by 10,000 won to 97.4 million won.