The Seoul Metropolitan Government released an analysis finding that, after the central government tightened real estate regulations, the amount of loans available for buying a home fell by 60 million won for young people and 100 million won for newlyweds.
The Seoul Metropolitan Government stated accordingly on the 22nd that it analyzed how loan regulations affect the purchase of dwellings by end-user households without homes that need housing stability, using the "2024 Seoul housing conditions survey" released late last year.
Households saying they "need to buy a home" were estimated at 1.65 million, or 76% of the 2.16 million households without homes. End-user young households number 890,000, and end-user newlywed households number 210,000. The average annual income of end-user young households was 42.26 million won, and the average asset was 180 million won. End-user newlywed households were found with an average annual income of 64.93 million won and an average asset of 330 million won.
Among the 1.65 million end-user households without homes identified by the city, the average annual income was 42.26 million won, and the average asset was 180 million won. The average annual income of end-user young households was 40.62 million won, and the average asset was 150 million won. Where there was liability, the average liability size was 100 million won. End-user newlywed households were found with an average annual income of 64.93 million won and an average asset of 330 million won.
In particular, compared with before the government's Oct. 15 real estate measures last year, the amount of loans available decreased by an average of 62.31 million won for young households and 100.04 million won for newlyweds, the analysis found. Considering average assets, this means that to buy a home, young people would need to secure about 40% of their assets additionally, and newlyweds about 30% of their assets. The comparison looked at the minimum loanable amounts by applying the loan-to-value ratio (LTV), the debt service ratio (DSR), and other factors before and after the regulations.
Jeong Jong-dae, head of the Seoul Metropolitan Government's Real Estate Policy Development Center, said, "Through this analysis, we confirmed that additional support, such as credit enhancement, is needed to expand home purchase opportunities for young people and newlyweds who intend to live in the dwellings," adding, "For renter households, a multilayered response is necessary, such as strengthening a stable residential foundation through private and public rental supply."