00:12Before you sign anything in Korea's property market, three policy shifts just changed the
00:18math. Seoul and the government are close to a deal that could unlock up to 130,000 new
00:26housing units. The tax break on your first home just got bigger if you're under 40, and fixed-rate
00:33mortgages just hit their lowest share in over 12 years. Here's what all three mean for your next
00:39move. It's Wednesday, August 26th. Let's look at what's happening in Korea's property market.
00:46Seoul's mayor and the land ministry are edging toward a deal that would raise redevelopment
00:51density limits and potentially ease greenbelt restrictions in exchange for dropping housing
00:57plans at Yongsan Park. At the same time, the tax authority is finalizing how much of a break
01:03first-time buyers, including non-resident owners, actually get, while mortgage rates are pushing
01:09more borrowers toward variable-rate loans. For residents weighing whether to buy now or wait,
01:15these three threads—supply, tax, and financing—are moving at once. Here's what the numbers show.
01:22Seoul estimates a 1.2 times increase in the redevelopment floor area ratio could add 43,000 units by 2031,
01:32on top of the 87,000 units already planned, bringing total net new supply to about 130,000 units.
01:42The 2026 local tax reform raises the first home acquisition tax break for buyers under 40
01:49from 200,000 won to 300,000 won, now extended to office tells under 40 square meters priced below
01:57200 million won. The government is leaning toward keeping the tax-exempt threshold for non-resident
02:04single homeowners at the current 1.2 billion won, rather than lowering it to 900 million won,
02:11as originally proposed. Fixed-rate mortgages fell to 31.9 percent of new home loans in July,
02:19down 5.8 percentage points from June, and the lowest level since February 2014,
02:25as fixed rates rose to 4.76 percent versus 4.35 percent for variable loans.
02:33Nong Hyop Bank resumes refinancing mortgages from other banks in 40-year loan terms outside the
02:40capital region, starting August 31, after regulators confirmed banks are back within their household loan
02:46targets. So what does this mean for buyers weighing a purchase this year? Earlier, we said Seoul and the
02:53government are close to a deal that could add up to 130,000 housing units by 2031. Here's what that
03:01actually means for you. More supply years out doesn't change this year's decision, but it does suggest
03:08redevelopment zones near Yongsan and southern Seoul are worth tracking for future value. For financing,
03:16the growing gap between fixed and variable mortgage rates means locking in a fixed rate now
03:22costs more upfront. So weigh that against the risk of rates rising further before you choose.
03:28That's today's APRISM Real Estate. This episode was produced with AI assistance based on Seoul Economic Daily
03:35reporting and reviewed by a human editor. AI Prism is a Juan Ifra award-winning series. We'll be back tomorrow.
03:42You've been listening to AI Prism from Seoul Economic Daily.
03:49You've been listening to AI Prism from Seoul Economic Daily.
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