South Korean mortgage loans register fastest growth in 2019
An onslaught of supply in Seoul rouses property seekers into borrowing mode
South Korea recorded its fastest increase in mortgage loans in June, thanks to an upswing in residential property supply.
With 26,000 new apartment units coming into metropolitan Seoul’s supply, the nation’s five major commercial banks saw their balance in mortgage-backed loans hit KRW421.5 trillion (USD361.2 billion) at the end of last month. The figure is an increase of KRW3.7 won from May, making it the largest monthly increase for 2019.
In comparison, only 11,000 units had been supplied for Seoul and its surrounds in May.
More: South Koreans own homes at age 43
On the flipside, personal credit loans registered one of their slower months in June. As of the end of the month, the banks’ balance in credit loans reached just KRW102.4 trillion, a monthly increase of KRW558.3 billion compared with a gain of KRW1.14 trillion in May. Lenders attributed May’s buoyant balance to high consumption during Children’s Day and Parents’ Day, which are money-oriented holidays in Korea.
Similarly, the balance of household debts in the country decelerated to an increase of just KRW3.77 trillion in June, compared with the KRW3.9 trillion rise in May. A weak growth in credit loans saw household debt balance hit KRW587.25 trillion toward the end of June.
Meanwhile, the balance of loans extended by individual business owners, which include self-employed individuals, gained KRW1.37 trillion between May and June to stand at KRW230.45 trillion. The figure held steady from the monthly increase in May.
Recommended
Rental markets surge in Asia as digital nomads find new opportunities with visa reforms
As countries in Asia roll out customised visa programmes, rental markets are thriving with the influx of remote workers
China’s hospitality market thrives as developers sell off assets to spark recovery
China’s indebted developers are divesting hospitality assets to generate growth and enhance the outlook of the country’s real estate market
Meet the Bitkub CEO turning real estate on its head with cryptocurrency and tokenised ownership
Jirayut “Topp” Srupsrisopa, CEO of Thai crypto exchange Bitkub, is a true believer in the potential of digitised finance
6 sights to spot in Jardine’s Lookout, Hong Kong
With its sumptuous harbour vistas, this low-density area is one of the most sought-after in Hong Kong