South Korea apartment prices record biggest decline in five years

Prices of apartments in South Korea recorded their largest quarterly drop since 2013, Yonhap reported.

Apartment prices plunged 0.3 percent in the three months to the second quarter of 2018, the biggest decline since the 0.7 percent decrease registered in Q1 2013, Bank of Korea data showed.

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However, rising market interest rates and increased supply are likely to stabilise housing prices for the rest of the year, the central bank stated.

Seoul defied the nationwide decreases with a 0.8 percent quarterly rise in apartment prices in Q2 2018. This is the fourth year in a row of increases for the South Korean capital.

In Gangnam and other upscale districts, apartment prices have made gains amid high liquidity and expectations of reconstruction projects moving forward, according to Yonhap.

The Bank of Korea has made eight interest rate cuts since 2012, fanning the heat in local housing markets and encouraging households nationwide to take out mortgages at record levels.

Ref : Property Report