Over 2 trillion won spent on homes in Seoul from selling stocks and bonds after last year's 6Β·27 measures
Since the implementation of the '6Β·27 measures' limiting housing loans in the metropolitan area, over 2 trillion won has been utilized for home purchases in Seoul from the proceeds of selling stocks and bonds.
Following the introduction of the '6Β·27 measures' that restricted housing loan limits in the metropolitan area to below 600 million won, it has been revealed that over 2 trillion won, specifically 23.966 trillion won, has been used for housing purchases in Seoul from stock and bond sales in the seven months following its implementation. The Ministry of Land, Infrastructure and Transport presented these findings to Mr. Kim Jong-yang of the National Assembly's Land, Infrastructure and Transport Committee, emphasizing that this influx of capital into the housing market coincided with increased regulations on financial institutions.
The analysis indicates a fluctuating trend in the use of funds from selling stocks and bonds for housing in Seoul. In 2021, during a property market boom, the amount was around 20.058 trillion won, declining to 5.765 trillion won in 2022, but then rebounding to 10.592 trillion won in 2023 and 22.545 trillion won in 2024, with a striking increase to 38.916 trillion won last year. Notably, the month with the highest funds allocated for home purchases from these sales was October of last year, when the KOSPI index surpassed 4000 for the first time, indicating a strong correlation between stock market performance and real estate investments.
Industry analysts suggest that the government's strict loan regulations have made it increasingly difficult to secure funds for home purchases through traditional means, leading to a rapid influx of capital from realized stock gains into the housing market. In the reported period, the highest amount allocated for home purchases was in Gangnam District, totaling 3.784 trillion won, with the three districts of Gangnam, Seocho, and Songpa absorbing a combined 9.098 trillion won, representing 37.9% of total sales from stock and bond sales. Furthermore, recent amendments to the real estate transaction reporting law have expanded the sources of funds that must be disclosed, including overseas deposits and loans, effective January 10.