Apartment Prices Soar Sky-High in Changwon-si, Designated as Real Estate Adjustment Area

The government is scheduled to hold a meeting of related ministers to review the real estate market and announce measures for the Jeonse system on the 19th. On the 18th, property listings were posted at a real estate agency in Jung-gu, Seoul. Photo by Moon Honam munonam@

[Asia Economy Yeongnam Reporting Headquarters, Reporter Ju Cheol-in] Gyeongnam Province announced on the 29th that it has requested the government to designate Uichang-gu and Seongsan-gu in Changwon City, where apartment prices have been rapidly rising, as regulated areas.

If designated as a regulated area, the loan-to-value ratio (LTV) for mortgage loans will be limited to 50% for housing prices up to 900 million KRW and 30% for prices exceeding 900 million KRW. The debt-to-income ratio (DTI) will be applied up to a maximum of 50% of income.

Additionally, when purchasing a house, a funding plan must be submitted to disclose the source of funds.

Over the past three months, the housing sale price increase rates in the two areas have continuously risen by 1.51% and 2.9%, respectively.

Gyeongnam Province plans to designate these areas as regulated zones to stabilize the real estate market and monitor apartment prices in neighboring areas where price increases are a concern.

Furthermore, it will conduct thorough investigations into activities that disrupt the order of real estate transactions and prepare long-term housing supply plans.

Yoon In-guk, Director of the Provincial Urban Transportation Bureau, stated, "We will protect actual demanders with strong regulations and establish order in real estate transactions to prevent residents from suffering due to soaring apartment prices."

This content was produced with the assistance of AI translation services.