Increase in loan ratios for multiple property owners... Warning of volatility in the real estate market

As expectations for the government to relax mortgage restrictions for multiple property owners continue, the proportion of such owners in housing loans has once again increased after a three-year decline. Last year, the share of multiple property owners in housing mortgages reached 31.9%, halting the previous three-year downward trend.

According to data processed by the Bank of Korea and national statistics, the outstanding balance of housing mortgages held by multiple property owners has been decreasing since 2021, but last year surged to 37.3 trillion won. This is an increase of about 3.6 trillion won compared to 2024. Analysts believe that multiple property owners are actively re-entering the market through loans.

The overall housing mortgage balance has also continued to grow. It was 98.54 trillion won in 2021 and reached 117.07 trillion won last year, rising sharply over about five years. This growth trend indicates that as housing prices rise, demand for loans continues to increase.

The government has called for the development of supplementary measures to minimize potential instability in the real estate market caused by relaxing mortgage restrictions for multiple property owners. Congressman Cha Gyu-geun stated that this restriction is a temporary policy and advocates for its use to effectively manage household debt and stabilize the real estate market. This aligns with the stance of the Bank of Korea, which expects that while curbing household debt growth, it will also positively impact the stabilization of housing prices.

This increasing trend in the proportion of loans to multiple property owners may further intensify market volatility in the future. How the government adjusts its regulatory policies could significantly influence market sentiment, and ongoing attention is needed.