In Q4 This Year, 27,000 Households to Be Released in Five Major Metropolitan Cities with Eased Regulations

[Asia Economy Reporter Hwang Seoyul] Approximately 27,000 housing units will be supplied in the five major provincial metropolitan cities where regulations have been lifted in the fourth quarter of this year.

According to Real Today, a real estate research firm, in the fourth quarter of this year (October to December), a total of 27,075 housing units (including rental units, excluding officetels and Happy Housing, based on total number of units) will be supplied across 24 sites in the five major provincial metropolitan cities.

By region, Daegu accounted for the largest share with 9,111 units (9 sites), followed by Daejeon with 7,776 units (5 sites), Busan with 7,560 units (5 sites), Gwangju with 1,327 units (2 sites), and Ulsan with 1,301 units (3 sites). This represents an increase of 99.8% compared to the third quarter supply (13,552 units) and a 76.3% increase compared to the same period last year (15,360 units).

The increase in supply in the fourth quarter is analyzed to be due to the lifting of regulations. The Ministry of Land, Infrastructure and Transport held a Residential Policy Deliberation Committee last month and removed the five major provincial metropolitan cities?Daejeon, Daegu, Busan, Ulsan, and Gwangju?from the list of regulated areas.

When an area is removed from the regulated zones and converted to a non-regulated area, the loan-to-value ratio (LTV) is raised to 70%, and the debt-to-income ratio (DTI) is raised to 60%. Additionally, up to two mortgage loans per household become possible, and conditions such as moving-in or disposal requirements for loans no longer apply.

In subscription applications, the first-priority subscription eligibility is relaxed from household heads to household members, allowing multi-homeowners to apply with first priority. The required subscription savings account membership period to qualify for first priority is also shortened to six months or more.

Jang Jaehyun, director of the Real Today research team, said, "With regulations lifted in most provincial areas except some parts of the metropolitan area and Sejong City, we expect a positive wind to blow through the previously sluggish sales market. Especially, provincial metropolitan cities have greater potential for price increases and significant demand hubs compared to small and medium-sized provincial cities, so they will be the biggest beneficiaries of this policy."

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