00:00before you sign anything in korea's property market the numbers just changed it's thursday
00:05october 22nd let's look at what's happening in korea's property market last week the president
00:10asked for higher floor area ratios in the third generation new towns the ratio sits around 206
00:16today and the proposal is to push it past 250 that could add roughly 30 000 to 40 000 homes
00:23here's what the numbers show sole apartments under 40 square meters average 459.9 million one in the
00:30first nine months of this year that's 15.9 percent higher than a year ago transactions above 1 billion
00:36one jumped 41.5 percent in songpa a 27 square meter unit in jam sal dong sold for 1.95
00:44billion one in
00:45september that's about 8.4 pyong rents are climbing and mortgage limits are tightening so buyers are
00:51choosing the smallest units they can afford among young borrowers the average loan to value ratio
00:56fell to 56.2 percent from 58.7 percent last year the average loan per deal rose about seven percent
01:04so what does this mean for buyers weighing a purchase this year if you're a first-time buyer your
01:08borrowing room is shrinking even as your target price rises the smallest homes are no longer the
01:13cheap exit they used to be watch the land supply plan a 300 floor area ratio could unlock more homes
01:19without new land but only if construction and occupancy actually follow earlier we said the
01:24smallest units are no longer a cheap entry point here's what that actually means for you compare
01:30the monthly cost of renting against the total purchase price and check your dsr before you commit
01:34that's today's ai prism real estate this episode was produced with ai assistance based on sole economic
01:41daily reporting ai prism is a juan ifra award-winning series we'll be back tomorrow
