Seoul apartment prices gain further ahead of BOK meeting
The prolonged rally has heightened the central bank’s concerns about financial stability risks
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[SEOUL] Seoul apartment prices extended their gains, ahead of next week’s central bank meeting to review interest rates, though the pace of increase slowed to the weakest in about five months as the Lunar New Year holiday dampened demand.
Prices in the capital rose 0.15 per cent in the week ended Feb 16, according to data released on Friday (Feb 20) by the Korea Real Estate Board (KREB), marking the 55th consecutive weekly increase. That was down from a 0.22 per cent gain the previous week and represented the slowest rise since September 2025. Nationwide apartment prices climbed a more moderate 0.06 per cent, the data showed.
The uninterrupted run of increases underscores the resilience of demand despite repeated government interventions and President Lee Jae Myung’s warnings, including his caution against extending favourable tax treatment for property sales.
Transaction volumes and purchase inquiries declined during this week’s Lunar New Year holidays, KREB said. Still, demand remained concentrated in large-scale apartment complexes, properties near subway stations, reputable school districts and redevelopment projects, supporting overall price growth in Seoul, it added.
The latest data will be closely watched by the Bank of Korea (BOK), which is scheduled to hold its rate-setting meeting on Feb 26. Economists widely expect policymakers to keep the benchmark rate unchanged. The prolonged rally has heightened the central bank’s concerns about financial stability risks, a factor it has cited in recent decisions to hold rates steady.
The relentless upswing has drawn unusually sharp criticism from Lee in recent weeks. The president has argued on social media that rising apartment prices reflect distorted incentives rather than genuine housing demand.
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Earlier this month, Lee stepped up his criticism, warning multiple-home owners to sell and vowing to take all possible measures to rein in prices. The current rally is reminiscent of the record 85-week streak of gains in Seoul apartment prices between June 2020 and January 2022. BLOOMBERG
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