"Looking for apartments under 600 million won" Loan limits halved, low-priced homes also heating up

Finding an apartment in Seoul has become a daunting task for many, particularly for those seeking properties under 600 million won, as banks significantly reduce or halt mortgage lending. A 30-something office worker, identified as A씨, shared his frustration, stating, "Banks are reducing housing loan limits or not accepting applications at all, so I'm trying to get a policy loan by looking for apartments under 600 million won, but it's hard to even find such places in Seoul."

Since April, the government has announced measures to manage the growth rate of household debt to within 1.5%. This policy has directly impacted the availability of loans for potential homebuyers. A씨 spends his weekends "scouting" in unfamiliar neighborhoods, a term used in South Korea for physically visiting and assessing properties and their surroundings, in a desperate search for affordable housing.

The tightening of lending conditions is forcing many, like A씨, to rely on government-backed loan programs. However, the scarcity of properties within the target price range in Seoul exacerbates the difficulty. The situation highlights the growing pressure on the housing market, where demand for affordable homes clashes with stricter financial regulations and limited supply.