The Korea Herald


Home transactions up 6% on-year in Sept.

By 박윤아

Published : Oct. 18, 2016 - 11:40

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[THE INVESTOR] Home transactions in South Korea has climbed 6.3 percent on-year in September, according to the Ministry of Land, Infrastructure and Transport.

The number of home transactions came to 91,612 last month, the ministry said.

September marked the second consecutive month of increase following a 13.6 percent on-year plunge in July. In August, home transactions gained 4.3 percent on-year to 98,130.

The apparent boom in the housing market followed a set of government measures, announced late August, that sought to limit the rapid increase in household debts, partly by reducing the number of new homes to be built and supplied over the next few years.

Such a move came as the overall amount owed by South Korean households came to a record high of 1,257.3 trillion won (US$1,109 billion) as of end-June, with home-backed loans, mostly considered mortgage loans, coming to 500.9 trillion won, accounting for 75 percent of the total 667.5 trillion won extended by local lenders.

While the planned reduction in new homes drove people to purchase homes in anticipation of price hikes, it has apparently pushed the construction industry into a further recession with the number of new home construction permits issued plunging 20.8 percent on-year in August.