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The amount of mortgages issued by banks showed the largest increase in 16 months in April. The Bank of Korea announced Wednesday that the amount of mortgage loans issued in April was W2.4 trillion (US$1=W1,026), the largest since December 2006 when W3.2 trillion was lent on mortgages. The amount of money has been continuously on the rise, with W800 billion lent in February, W1 trillion in March and W2.4 trillion in April. As of the end of April, a total of W226.6 trillion in mortgages had been issued. This indicates that the real estate market is more dynamic this year after last year¡¯s general slump.
The price of real estate north of the Han River went up with the unveiling of inner-city housing development plans, and this led to an increase in the number of real estate dealings. The reduction of interest rates also contributed to the sharp rise in mortgages. Last year, due to various measures by the government regulating investment in real estate, the number of real estate transactions was unremarkable, and the amount of mortgages rose only W4.6 trillion throughout the year, an official at the Bank of Korea said. However, as the number of new housing going on sale increased this year, mortgages are also going up, he added.
(englishnews@chosun.com )
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