Seoul: New mortgage loans per borrower plummeted at the fastest rate in the second quarter as government regulations aimed to cool the overheated housing market, according to central bank data released Tuesday. Fresh mortgage lending per borrower averaged 208.29 million won (US$159,900) during the April-June period, representing a decrease of 21.1 million won from the record high of 229.39 million won recorded three months earlier, as per the data from the Bank of Korea (BOK).

According to Yonhap News Agency, this drop marks the most significant on-quarter decline since the BOK began compiling such data in 2013. New household lending per borrower, which encompasses mortgage loans, decreased by 1.28 million won to 34.14 million won during the same period, reaching its lowest level since the first quarter of 2023. The BOK indicated that local banks have tightened lending controls following government measures aimed at stabilizing the property market.

The decline in new mortgage loans was observed across nearly all age groups in the second quarter, with borrowers in their 40s experiencing a 35.37 million-won decrease and those in their 30s facing a 26.32 million-won decline. Regionally, fresh mortgage lending in the greater Seoul area saw a reduction of 43.97 million won per borrower in the second quarter, followed by the Gangwon region with a decrease of 21.08 million won.