A Study on the Impact of Changes in Regional Housing Finance Policies on House Prices in Metropolitan Areas

This study examines how the interaction between housing finance policies and regulatory areas affected house prices from January 2016 to March 2023, focusing on the strengthening of many housing finance regulations such as LTV, DTI, and DSR, and regulated areas such as overheated speculation districts and adjustment target areas. In particular, we aimed to identify the policy effects of housing finance policy and regulated areas and whether the interaction of housing finance policy and regulated areas stabilised the market in terms of house prices by region in the Seoul metropolitan area. Regarding the characteristics of regulated areas, we found that overheated speculation districts have been concentrated in Seoul since 2016, and in the case of the Seoul metropolitan area, overheated speculation districts and adjustment target areas have a positive effect on apartment sales prices, leading to an increase in apartment sales prices. In the case of LTV and DTI, we found that lower LTV and DTI ratios decreased apartment sales prices in Gyeonggi-do and Incheon. In contrast, in the case of DSR, it was found that lower DSR decreased apartment sales prices only in Seoul. Lower DSR decreased apartment sales prices in overheated speculation districts in Gyeonggi-do, indicating that there was a policy effect of housing finance policy.