"Rate cuts" are limited to stimulating housing prices...Loan regulation is key.

[Anchor]
As the Bank of Korea lowered its benchmark interest rate, some say that housing prices in Seoul, which have been slowing down for a while, may be running again.

However, with the government imposing strong loan regulations, the diagnosis is likely that the impact of the rate cut on housing prices will be very limited.

I'm reporter Kim Ki-bong.

[Reporter]
Apartment prices, which started in 3 Gangnam districts earlier this year and spread strongly throughout Seoul and the metropolitan area, are rising!

We lost momentum over the summer.
The volume of apartments in Seoul, which was close to 9,000 in July, is expected to remain at 3,000 in September, and the weekly sales price increase has also weakened to 0.1%.

In this situation, the base rate cut is a good thing for the real estate market, but the impact will be weak.

The Fed's rate cut and subsequent link to domestic interest rates were expected from the first half of this year and have already been reflected in the housing market, and the rate cut is not large enough to change an individual's decision to buy a home.

Above all, it is a diagnosis that interest rate cuts themselves do not mean much due to the government's strong loan regulations.

[Lee Eun-hyung / Researcher at the Korea Institute for Construction Policy] Now, the government's regulation of loans, that is, whether individual borrowers receive as many loans as they need, is more important than interest rates. Once the loan comes out, the interest rate is meaningful.]

It is observed that it is difficult for the situation to change easily as loans are blocked due to the already rising housing prices.

However, if the interest rate cut is maintained, the pressure to increase housing prices will inevitably be strengthened.

This is because there are still situational conditions for housing prices to jump again.

[Park Hap-soo / Professor of Konkuk University Graduate School of Real Estate] If interest rate cuts are carried out in the future, there may be a gradual atmosphere. [After all, the market atmosphere is at the bottom due to the lack of supply or rising jeonse prices, and the overall atmosphere has improved, such as liquidity inflows]

Experts say that the price of houses that rose in the first half of this year is generally strong for the time being. We are weighing the possibility of a modest rise in future interest rate trends.

I'm Kim Ki-bong of YTN.

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video: Eunkyung Lee
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