Highest drop in housing price increase expectations in 3 years due to loan regulations

Following the implementation of real estate loan regulations last month by the Lee Jae Myung administration, the forecast for housing prices has significantly declined.

According to data released by the Bank of Korea on Wednesday, the housing price forecast index for July stood at 109, down 11 points from June.

While the figure remains higher than the long-term average of 107, it's the largest monthly decline in three years.

The figure indicates a significant decrease in the proportion of consumers expecting home prices to rise over the next year.

Following the announcement of new real estate policy on June 27th, all housing loans in the Greater Seoul area are capped at 600 million won, or 442-thousand U.S. dollars, regardless of income or property price.