Seoul apartment prices continue to rise ahead of Bank of Korea meeting

[SEOUL] Apartment prices in South Korea’s capital posted gains for a 49th straight week, reinforcing the case for the central bank to keep its policy rate unchanged when the board meets next week.

Apartment prices in Seoul rose 0.18 per cent in the week to Jan 5, with the pace easing marginally from a 0.2 per cent increase a week earlier, Korea Real Estate Board (KREB) data showed on Thursday (Jan 8). The latest figures follow an 8.7 per cent advance over the whole of 2025, reflecting persistent demand in the capital.

While overall transaction volumes and buying inquiries have fallen, price increases in sought-after districts, including redevelopment areas and large apartment complexes near major transit hubs, continued to lift prices across the city, the KREB said.

The Bank of Korea edged towards a neutral policy position at its November meeting, removing a reference in its statement to maintaining a rate-cut stance. After holding the policy rate steady for a fourth consecutive decision, governor Rhee Chang Yong said that the views of board members were split evenly on whether there might be a rate cut over the next three months or whether the bank should stand pat during that period.

Most economists say the easing cycle has run its course due to inflationary threats stemming from the won’s weakness and continuing strength in the housing market. The board’s next policy meeting is scheduled for Jan 15.

The housing rally, particularly in the Greater Seoul area, has kept policymakers focused on the risks of a deepening concentration of activity in the capital region. The government rolled out a series of additional measures meant to temper the rally last year, including caps on mortgage lending, but those steps have so far failed to curb price gains. BLOOMBERG