Seoul apartment prices climb again as mortgage rates and ABS issuance surge
Apartment prices north of the Han River have started to rise again after a period of stability, following a brief cooling period caused by changes in mortgage rules. This shift comes as banks have increased their mortgage rates for the first time in five months.
The rise in apartment prices is partly attributed to an increase in ABS (Asset-Backed Securities) issuance. In the third quarter, ABS issuance surged by over 20%, largely driven by an increase in mortgage-backed securities. This trend, combined with the recent rise in mortgage rates by banks, suggests a renewed activity in the housing market.
Experts note that the increase in ABS issuance reflects investors' confidence in the Korean housing market. However, it's important to monitor these trends as they could potentially lead to a new wave of housing price increases.
The recent changes in the housing market, including the rise in apartment prices and ABS issuance, coupled with the increase in mortgage rates, indicate a shift in the Korean housing market dynamics. These developments may signal a return to a more active housing market, but also warrant close observation to ensure stability.
