Rising prices and tighter loan rules squeeze prospective buyers in a double bind

Apartment complexes seen from the Lotte World Tower observatory in Songpa-gu, Seoul. [Yonhap]
Apartment complexes seen from the Lotte World Tower observatory in Songpa-gu, Seoul. [Yonhap]

As home prices continue to rise, a growing number of apartment complexes are crossing the 1.5 billion won (about $993,000) mark, pushing them above the threshold at which borrowers can access the maximum 600 million won mortgage limit. Experts are advising prospective buyers in areas where prices have surged sharply to review their financing plans carefully, including confirming how much they can actually borrow.

According to KB Real Estate data released Monday, the KB average market price for a 59-square-meter unit (exclusive use area) at Dangsandong 1-cha Hyosung in Yeongdeungpo-gu, Seoul, now stands at 1.525 billion won. Because mortgage limits are determined by KB market valuations, buyers can currently borrow only up to 400 million won on the property. Just a month ago, when the unit was valued in the 1.4 billion won range, buyers could borrow up to 600 million won — a drop of 200 million won in the borrowing ceiling. A year ago, actual transaction prices at the complex were in the high 1.1 billion to low 1.2 billion won range.

A 59-square-meter unit at Geumho Doosan Apartment in Seongdong-gu is also now valued at around 1.545 billion won on the KB index. The sale price for the same unit size was 1.25 billion won in January, meaning prices have risen by 300 million won in just four months. As a result, the equity a buyer needs to purchase the unit has increased by nearly 500 million won, including the 200 million won reduction in the available loan amount.

Current KB market valuation for a 59-square-meter unit at Dangsandong 1-cha Hyosung in Yeongdeungpo-gu, Seoul. [KB Real Estate capture]
Current KB market valuation for a 59-square-meter unit at Dangsandong 1-cha Hyosung in Yeongdeungpo-gu, Seoul. [KB Real Estate capture]
Apartment complexes in Songpa-gu, Seoul, and the Hanam area of Gyeonggi Province, seen from the Seoul Sky observatory atop Lotte World Tower in Songpa-gu. [Herald Business DB]
Apartment complexes in Songpa-gu, Seoul, and the Hanam area of Gyeonggi Province, seen from the Seoul Sky observatory atop Lotte World Tower in Songpa-gu. [Herald Business DB]

Sadang Woosung 2 complex in Dongjak-gu has also recently crossed the 1.5 billion won mark on the KB index. The 1,080-unit complex set new price records last month across three unit sizes — 46, 59 and 118 square meters, with the 59-square-meter unit on the 14th floor selling for 1.65 billion won. The KB average market price for the 59-square-meter unit rose from 1.475 billion won in January to 1.51 billion won in March, cutting the maximum available mortgage by 200 million won.

The lowest current asking price for the same unit type is now 1.68 billion won, reflecting further gains since then. Compared with the start of the year, a buyer purchasing the apartment today would need to bring roughly 300 million won more in equity, factoring in the reduced loan ceiling.

Nam Hyeok-woo, a real estate researcher at Woori Bank, said that when mortgage limits are cut, demand tends to shift toward alternative properties, which can slow transactions at the affected complex. "Moreover, when prices have surged sharply over a short period without enough actual transactions to support them, downside rigidity can be weak," he said. "I would advise against overextending on a purchase under these conditions."

‘삼전닉스 직원 몰렸나’ 동탄·광교 등 매수자, 연소득 6500만원 넘겼다 [부동산360]

‘삼전닉스 직원 몰렸나’ 동탄·광교 등 매수자, 연소득 6500만원 넘겼다 [부동산360]

[헤럴드경제=홍승희 기자] 올해 1분기 경기도 아파트를 산 가구의 연간 중위 소득이 1년 전보다 10% 가까이 증가해 6500만원을 넘긴 것으로 나타났다. 삼성전자와 SK하이닉
https://biz.heraldcorp.com/article/10762082

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