Seoul home prices extend rally as government mulls cooling steps

[SEOUL] Prices for apartments in South Korea’s capital extended their rally to a 45th week as the country’s property market stayed heated despite wide-ranging government measures aimed at cooling demand, with more steps in the pipeline.

Seoul apartment prices rose 0.18 per cent in the week ended Dec 8, compared with a 0.17 per cent gain the previous week, according to Korea Real Estate Board (KREB) data released on Thursday (Dec 11).

The figure highlights persistent demand for housing, particularly in Seoul, where gains surpassed the 0.06 per cent advance for apartments nationwide.

“While there is a wait-and-see mood in the market, contracts for price increases are being signed in key preferred complexes, such as those with reconstruction plans, those near subway stations, those in school districts, and large complexes, leading to an overall increase in prices in Seoul,” the KREB said.

The rally continued despite government measures meant to temper buying that were rolled out in October. Top officials signalled over the weekend that more action is forthcoming.

“The presidential office is fully prepared with policy measures aimed at stabilising housing prices,” President Lee Jae-myung’s chief of staff, Kang Hoon-sik, told reporters on Sunday, without giving details of what specific steps are being considered.

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The persistent rally in property prices has been among the key factors keeping the Bank of Korea’s (BOK) board from resuming the monetary easing cycle in recent months, even as the outlook for manufacturers darkened in the face of US President Donald Trump’s tariff campaign.

After the BOK extended its pause last month, governor Rhee Chang-yong said that the board is now evenly split on whether the benchmark rate might need to be held steady or lowered over the next three months. BLOOMBERG