'The June 27 lending regulation' was announced just before the housing business outlook index for July in Seoul recorded its highest level in about eight years.
According to the Korea Housing Institute on the 15th, a survey conducted from June 19 to June 27 among companies engaged in the dwelling business revealed that the Seoul outlook index rose by 28.9 points to 135.1 compared to the previous month.
An index above the baseline of 100 indicates a more optimistic outlook, while below 100 signifies the opposite.
This is the first time since June 2017 (131.8) that the Seoul index has surpassed 130 in eight years and one month.
The index for Gyeonggi Province rose by 29.4 points from 92.8 to 122.2, while Incheon increased by 17.9 points from 95.8 to 113.7. The metropolitan area was surveyed at 123.7, up 25.4 points.
This survey was mostly completed just before the government announced the 'June 27 lending regulation,' so the impact of the regulation was not reflected.
A representative from the Korea Housing Institute said, "The overheating phenomenon in the dwelling market, which began in the three districts of Gangnam (Gangnam, Seocho, and Songpa) until last month, has spread to areas such as Bundang and Gwacheon that are designated as overcrowding control zones in the metropolitan area. This has significantly improved the outlook for the metropolitan area's economy."
The outlook index for non-metropolitan areas recorded 94.0, an increase of 2.4 points, marking the highest level this year.
The national index recorded 100.0, a rise of 6.5 points. This marks the first time the national index has risen above the baseline since June 2021 (108.8), in four years and one month.
A representative from the Korea Housing Institute noted, "Since the announcement of the June 27 household debt management reinforcement plan, there has been a rapid contraction in housing transactions, and as market uncertainties have increased, including the possibility of additional regulations, buyers have shown a tendency to temporarily defer their decisions to purchase dwellings."