The Impact of South Korean Government's LTV Policy in 2014 on Prices of Real Estate Properties : Focusing on Apartments in Anyang City

Abstract

This paper examines the relationship between the South Korean government's house mortgage loan policy and real estate prices. This paper shows how the government's recent change in the Loan-to-Value (LTV) ratio affects prices of apartments in Anyang city. Furthermore, this paper will scrutinize whether increasing the LTV ratio brings irrational exuberance in the apartment markets. Finally, based on the results of this research, future public policy for real estate debt will be suggested.