this year, the government announced three rounds of real estate measures for 2025. The policies ranged from tightening mortgage lending regulations to expanding regulated areas in the metropolitan area to plans to increase housing supply. To predict the direction of the real estate market next year, it's important to understand exactly what was announced this year. Let's take a closer look at the key points of each measure.

highlights of the June 27 measures

the first set of 2025 real estate measures announced on June 27 was centered on tightening mortgage regulations, particularly for main mortgages in metropolitan areas and regulated areas.

limits on main mortgages

in the Seoul metropolitan area and regulated areas, mortgages for home purchase purposes can only be up to 600 million won. if you already own a home, you cannot take out a mortgage for the purpose of purchasing a home, and you must dispose of your existing home within six months before you can take out a new loan. if you own more than one home in the same neighborhood, you're also prohibited from taking out a mortgage for stabilization purposes.

loan maturity and move-in obligations

the maturity of a mortgage secured by a home in the metropolitan area and regulated areas is limited to 30 years or less. In addition, if you take out a mortgage for the purpose of purchasing a home, you must report your move within six months.

key takeaways from the September 7 measures

the second set of 2025 real estate measures was announced on September 7, focusing on plans to expand housing supply in the Tokyo metropolitan area.

plan to supply 1.35 million housing units in the Tokyo metropolitan area

the government has set a goal of supplying a total of 1.35 million housing units in the Seoul metropolitan area by 2030, or 270,000 units per year. The standard for managing supply has also been changed from completion to commencement, meaning that actual construction must begin before it is recognized as supply. the Korea Land and Housing Corporation will actively participate in housing supply, and reconstruction and redevelopment procedures will also be streamlined.

tighter lending regulations in Gangnam 3

lending regulations have also been tightened. the upper limit for LTV in regulated areas such as Gangnam 3 and Yongsan-gu in Seoul has been lowered from 50% to 40%. This means that the ratio of equity capital required to purchase a home has been increased.

reduced total loan limits

the total mortgage limit for single-family homes has been unified at 200 million won for guarantors in the Seoul metropolitan area and regulated areas. this is a reduction of about 100 million won for Seoul Guarantee Insurance.

highlights of the October 15 Measures

the third round of real estate measures for 2025 was announced on October 15. Expanding regulated areas and tightening lending conditions are key.

significant expansion of regulated areas

all of Seoul and major areas in the Seoul metropolitan area have been designated as regulated areas. In regulated areas, a 40% LTV is applied, and different loan limits are applied depending on the price range of the house. we have also added a requirement to obtain a license for housing transactions.

increased Stress DSR surcharge

the Stress DSR surcharge for all mainstream loans has been increased from 1.5% to 3%. stress DSR is a system that assesses a borrower's ability to repay, taking into account the possibility of future interest rate increases. This further reduces the amount of money that can be borrowed.

real estate policy outlook for 2026

next year, we can expect both big and small changes to real estate policy. from January 2026, the management of mortgage loans by banks will be tightened, and additional supply measures may be announced. with the government responding closely to market trends, it's important to keep up with real estate news.

frequently asked questions

Q. where will the 40% LTV be applied in the 2025 real estate measures? A. The 40% LTV will be applied to the three districts of Gangnam, Yongsan, and the rest of Seoul and key regulated areas in the Seoul metropolitan area designated after the October 15 measures.

Q. what is the main loan limit for home purchase? A. In the Seoul metropolitan area and regulated areas, the maximum loan amount for home purchase is KRW 600 million. however, existing homeowners must dispose of their home within 6 months.

Q. how much has the Stress DSR surcharge changed? A. It has been increased from 1.5% to 3%. this is a more conservative assessment of your ability to repay, reflecting the possibility of rising interest rates.

Q. what happened to the single-family loan-to-value limits? A. The total borrowing limit for single-family homes in the metropolitan area and regulated areas has been unified at 200 million won, which is about 100 million won less than before.

Q. will there be additional real estate measures in 2026? A. The government may announce additional supply measures depending on market conditions, and it is expected to strengthen the management of banks' loan portfolios from January.

key takeaways

the core of the real estate measures for 2025 are the tightening of mortgage lending regulations and the expansion of regulated areas in the Tokyo metropolitan area. if you're planning to buy or borrow a home next year, be sure to keep an eye on the changes.

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