South Korea’s house price decline slows in January on policy support

SOUTH Korea’s house prices fell for an eighth consecutive month in January, although the pace of decline slowed from the previous month on policy support measures, Korea Real Estate Board data showed on Wednesday (Feb 15).

The Board’s headline index for nationwide house prices fell 1.49 per cent in January, slower than 1.98 per cent in December, which was the fastest since data releases began in late 2003.

It was the first time the falling pace of the index slowed from a month before, since the declining trend began in June 2022.

“It was partly due to expectations for a market recovery after banks’ lowering of commercial interest rates and government announcement of policy measures,” the Board said in a statement.

Earlier this year, South Korea has come up with several policy measures to support the sharply falling property prices, including easing of financial regulations on home buyers in most districts of the capital Seoul.

South Korea’s central bank raised its policy interest rate last month by 25 basis points to 3.50 per cent, the highest since late 2008, with hints that its 1-1/2-year rate-hike campaign had ended. REUTERS