Seoul apartment prices drop for first time in nine months

APARTMENT prices in Seoul slipped for the first time in nine months, in the latest data supporting the Bank of Korea’s policy pivot last month and foreshadowing the potential for an acceleration of monetary easing next year.

An index representing prices slid 0.01 per cent in September versus August, the first dip since December, according to data on Sunday from the Korea Real Estate Board. The numbers underscored the slowdown in housing prices that allowed the central bank to go ahead with a quarter-point cut to its benchmark interest rate in October.

The BOK is widely expected to hold its rate unchanged when it meets later this month. However, speculation is growing that continued stability in housing markets would allow officials to quicken the pace of rate cuts next year, at a time when economic uncertainties may rise.

Trends in property markets are a key barometer of financial balances when the board considers its policy settings. BLOOMBERG