Seoul apartment prices rise at an increasing rate... Bank of Korea says, ”We should give people peace of mind that supply measures are being taken” - Korean media

Despite the announcement of real estate price measures by the South Korean government, apartment prices in the Seoul area have been rising for three consecutive weeks. The Bank of Korea has said that expectations for rising housing prices have declined.
He said the government must maintain its policy of strengthening macro-prudential policies such as credit limit regulations while providing a sense of security regarding housing supply.
According to the "Weekly Apartment Price Trends" released by the Korea Real Estate Institute on the 25th, the increase in apartment sales prices in Seoul in the fourth week of September was 0.19%, up from the previous week (0.
This represents a 0.07% increase compared to the previous year (12%). The rate of increase in Seoul apartment prices, which had fallen 0.08% in the last week of August, has continued to expand this month.
While apartment prices in all 25 districts of Seoul continue to rise, the rate of increase has been particularly strong in the so-called "Hangang Belt."
The largest increase was in Seongdong-gu (0.59%), followed by Mapo-gu (0.43%), Gwangjin-gu and Songpa-gu (0.35% each), and Gangdong-gu (
The second highest was in the district of Yongsan-gu (0.31%), followed by Yongsan-gu (0.28%). The "June 27th Measures" were a demand-suppressing policy that limited home equity loans to 600 million won (approximately 63.8 million yen), and the expansion of housing supply.
Despite the announcement of the "September 7th Measures" that include major measures, expectations for rising housing prices remain overheated. In fact, doubts about the effectiveness of the September 7th Measures are driving expectations for rising housing prices.
Some believe that this has fueled the fire. The desire to buy real estate is spreading as people believe that government measures are unable to resolve the fundamental imbalance in supply and demand.
This upward trend in housing prices is likely to affect the timing of further interest rate cuts by the Bank of Korea.
Recently, the Bank of Japan has been placing importance on correcting real estate prices, fearing that interest rate cuts could fuel household debt and rising housing prices, widening financial imbalances.
"Compared to the real estate measures announced by the past government, the situation has improved," said Chang Jeong-soo, director of the Financial Stability Bureau at the Bank of Korea's Financial Stability Bureau, at a briefing on the Financial Stability Report on the same day.
"Compared to the previous figures, the slowdown in the rate of increase in housing prices since the announcement of the June 27th and September 7th measures has been limited," he said, adding, "Not only the prudential policies but also supply measures and the policies of the Bank of Korea are raising expectations for an increase in real estate prices."
"It should be done consistently and sustainably so as not to provoke conflict."