New home permits in South Korea dropped 9.2 percent in the first half of the year, the government said Tuesday, amid toughened regulations on the housing market. Construction permits issued for new homes came to 226,594 in the first six months of the year compared with 249,505 the same period a year ago, according to the Ministry of Land, Infrastructure, and Transport. Market watchers said a drop in home prices, particularly regions outside the Seoul metropolitan area, and strict regulations on house rebuilding projects led the decline in new home permits.

The Moon Jae-in administration has been introducing a set of measures, including strict mortgage rules and heavy taxation, to cool down the overheated housing market in recent years. New home permits issued in Seoul soared 34.6 percent on-year to 37,643, but those issued outside the capital area plunged 26.3 percent on-year to 97,556, according to the ministry.