The South Korean government is expected to finalize a measure restricting the extension of mortgage loans for multiple homeowners, which could result in around 10,000 apartments being put on the market in the capital region within this year. This spike in listings is significant when compared to the 77,000 apartment transactions in Seoul over the past year. Analysts suggest that the housing market may shift further towards buyer advantage as a substantial influx of properties is anticipated.

According to financial authorities, there are approximately 12,000 apartments in the capital region backed by loans with a bullet repayment structure, of which 83%, or about 10,000 units, are due for repayment this year. The Financial Services Commission and the Ministry of Land, Infrastructure and Transport are currently reviewing the guidelines for limiting the loan extensions for property owners. This decision aligns with President Lee Jae-myung's directive that the same lending standards applied to new home purchases should also be applied to homes held by multiple homeowners.

Should the regulations on multiple homeowners’ loans be established, it is highly likely that those unable to manage the loan repayments will resort to selling their properties as a means of coping, resulting in a significant increase in market supply. The government's housing policy announcement, which includes these intended measures, is reportedly in the final stages of coordination. Meanwhile, recent data suggest that as the deadline for the suspension of the additional capital gains tax for multiple homeowners approaches, the average prices in Gangnam area are experiencing downward pressure, further illustrating the complexities of the current housing market dynamics in Seoul.