The proportion of loans from financial institutions for home purchases in Seoul varies significantly by region. While the share of loans has decreased in the Gangnam area and Yongsan, the so-called 'Nodogang' region, which includes Nowon, Dobong, and Gangbuk, recorded a loan proportion of around 30%.
According to data submitted to the National Assembly's Land, Infrastructure and Transport Committee by Kim Jong-yang, a member of the ruling People Power Party, the proportion of loans among total home purchase funds in Nowon from January to August this year was 38.2%. This marks an increase of 8.2 percentage points from last year's 30.0%. In Dobong, the loan proportion rose from 28.0% to 31.9%, while Gangbuk maintained a similar level, decreasing slightly from 31.5% to 31.4%.
In contrast, the share of loans in the Gangnam area and Yongsan has uniformly declined. In Gangnam, the proportion fell from 20.9% last year to 9.3% this year, a drop of 11.6 percentage points. Seocho decreased from 18.0% to 9.5%, Songpa from 21.1% to 13.8%, and Yongsan from 17.5% to 10.9%.
When combined, the loan proportion for the Gangnam area and Yongsan dropped from 19.8% last year to 11.1% this year.
Conversely, the share of funds from the sale of financial assets has increased in these areas. In Gangnam, the proportion of funds from the sale of stocks and bonds rose from 5.5% last year to 14.8% this year. Seocho increased from 5.3% to 15.6%, Songpa from 4.1% to 10.8%, and Yongsan from 7.0% to 15.5%.
When combined, the proportion of funds from financial institution deposits in the Gangnam area and Yongsan also rose from 16.5% last year to 19.8% this year. The share of funds obtained through gifts and inheritances also increased from 4.7% to 7.0%.
Experts suggest that the Nodogang region, where the proportion of apartment transactions under 1.5 billion won is high, may be more sensitive to changes in loan regulations.
According to an analysis of the actual transaction price disclosure system by the Seoul Metropolitan Government, 99.8% of apartment transactions in Nowon in August were below 1.5 billion won, while all transactions in Dobong and Gangbuk were also below this threshold. Overall, 79.9% of transactions in Seoul were below 1.5 billion won.
As a result, if the loan limit of 600 million won for homes priced below 1.5 billion won is further reduced, it is expected that homebuyers in the outskirts of Seoul will be disproportionately affected.
High-priced areas have greater purchasing power through cash and financial assets, while peripheral areas are more reliant on loans. Therefore, additional loan regulations could put more pressure on the purchasing power of genuine buyers in these areas.
Kim stated, “As the threshold for loan regulations rises, areas with cash reserves can purchase homes with their own funds, while genuine buyers in the outskirts of Seoul, who cannot buy homes without loans, are being pushed to the brink. The loan regulations intended to control housing prices have instead turned into regressive measures that undermine the ability of ordinary citizens to secure their own homes.”
He added, “Tightening the mortgage loan limit further is akin to telling genuine buyers in the outskirts, including Nodogang, not to buy homes. The government and financial authorities must stop the uniform tightening of loans and establish protective measures for genuine buyers.”
* This article has been translated by AI.
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