By: Cynthia Kim
SEOUL: South Korea said it will tighten loan limits for home buyers to 60 percent of property value from the current 70 percent in regions showing signs of overheating including Seoul, the finance ministry and financial regulator said in a statement.
Debt repayments will be limited to 50 % of homebuyers’ annual income in those selected regions, down from current 60 %, it said.
The new measures will be effective from July 3.
The government will also restrict the resale of newly builtapartments in Seoul, some parts of Busan as well as in Sejonguntil registration of property ownership is complete, to coolspeculative investments in those regions, it said.
(Editing by Shri Navaratnam)
Source: Reuters