Decline in South Korea's House Prices Moderates in May
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Loading... - Chaiya Anurak
- 15 Jun 2023
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In May, the decline in house prices in South Korea showed signs of easing, marking the slowest pace in the past 10 months. This positive development, revealed by the Korea Real Estate Board's data on Thursday (June 15), has fueled hopes for a market recovery.
According to the data, the nationwide house transaction price index decreased by 0.22 percent in May, which is less than half of the 0.47 percent decline recorded in April. This represents the 12th consecutive month of decline for the index. However, the rate of decline has gradually softened since December, when it reached a record drop of 1.98 percent. The May figures indicate the slowest decline since July.
The board reported that transaction prices experienced an increase in some highly sought-after areas, adding to the optimism surrounding the market's recovery and mitigating the overall decline in the index.
In a bid to engineer a controlled landing for the real estate market, the South Korean government implemented policy measures, including tax cuts and special loans. These initiatives, coupled with the decision of the country's central bank to keep interest rates steady for the past three meetings following a hike in January, have contributed to a slower rate of decline in house prices this year.
