S.Korea's housing permits surge 53 pct in Aug. after easing regulation

Housing permits in South Korea surged more than 50 percent after easing regulations on mortgage financing, indicating a recovery in the housing market, a government report showed Wednesday.

Housing permits jumped 53.4 percent from a year earlier to 49, 067 in August nationwide, rising for three months in a row, according to the Ministry of Land, Infrastructure and Transport. The figure is seen as a leading indicator for the housing market conditions.

For the first eight months of this year, the permits increased 26.2 percent to 313,602 units.

The increase came as the government eased regulations on mortgage financing by raising the loan-to-value (LTV) and debt-to- income (DTI) ratios to boost the lackluster housing market.

By region, housing permits in Seoul tumbled 69.7 percent, but those in the provincial areas, excluding Seoul and its surrounding metropolitan region, doubled in August from a year earlier.

Housing starts declined 10.9 percent from a year earlier to 31, 577 in August, but the figure increased 13.1 percent to 282,604 units for the first eight months of this year.