South Korea Property Prices Decline slowed

Data released Wednesday by the Korea Real Estate Board indicated that home prices in South Korea decreased for the eighth consecutive month in January, albeit the rate of fall reduced from the previous month due to governmental support measures (Feb 15).

January’s 1.49 percent drop in the Board’s national home price index was less severe than December’s 1.98 percent drop, which was the steepest monthly decline since the Board started publishing these figures in late 2003.

As the index’s monthly decline decreased from the previous month, it was the first time the index’s monthly decline has slowed since the downward trend started in June 2022.

The Board said that this was due in part to “expectations for a market rebound” after commercial interest rates were cut by banks and policy measures were announced by the government.

South Korea came up with a number of policy steps earlier this year to assist the drastically declining property prices. These efforts included relaxing financial constraints on house purchasers in most neighborhoods of the capital city of Seoul.

Last month, South Korea’s central bank raised its policy interest rate by 25 basis points to 3.50%, on of the highest since late 2008. This followed signs that the bank had concluded its campaign of rate increases that had lasted for the previous 1.5 years. REUTERS