The Bank of Korea (BOK) has assessed that the government's stricter loan regulations, implemented on June 27, have reduced the growth in Seoul apartment prices by approximately two percentage points.

The central bank released the findings Sunday in a report analyzing the impact of the so-called June 27 regulations, which cap mortgage loans for individual homebuyers in Seoul and surrounding areas at 600 million won, regardless of property value or income level.

According to the BOK, without the regulations, apartment prices in Seoul would likely have risen by six percent between the end of June and the end of December, but with such measures in place, price growth is expected to be reduced by between one-point-six and two-point-one percentage points.

The bank concluded that the macroprudential policies, including the loan cap, have been effective in stabilizing housing prices without hindering overall economic growth.