South Korea president's housing revival spurs plan for record bonds
Korea Housing Finance Corp will offer as much as eight trillion won of mortgage-backed debt
South Korean President Park Geun-hye's success in reviving the property market is prompting the country's sole issuer of bonds backed by home loans to plan record sales of the notes.
That would be a record, exceeding the 7.88 trillion won in the last three months of 2012, according to data from the Seoul-based lender.
Housing permits leapt 53 per cent in August after Park's government eased mortgage restrictions to shore up slowing growth in Asia's fourth-largest economy.
Interest in the Acroriver Park apartment complex being built by Daelim Industrial in Seoul's upmarket Gangnam area has surged on signals of government support for the property market, project sales director Jang Woo-hyun said.
"We're seeing more underlying assets packaged as [mortgage-backed securities] as the housing market regains vitality," Choi said recently. "We're quite optimistic about next year too."
The government increased the loan limit for homebuyers to 70 per cent of a property's value from as low as 50 per cent, starting from August.