Home prices in Seoul are rising at the fastest pace in more than 4 years, according to Reuters
SEOUL (Reuters) – South Korean house prices rose sharply in July, as prices in the capital Seoul rose the most in more than four years, data showed on Friday, amid growing concerns about risks to financial stability posed by the housing boom. the market.
The home price index rose 0.15% in July, faster than the 0.04% monthly increase in June and the fastest since October 2023, according to the Korea Housing Board.
Prices in Seoul fell 0.76% during the month, the sharpest rise since December 2019, as investment demand increased in areas undergoing or planned for reconstruction and led to more purchases at record prices.
Earlier this month, the government unveiled measures to improve supply in the housing market, targeting the construction of more than 400,000 new homes over the next six years to curb rising prices.
In July, the Bank of Korea opened the door to an interest rate cut, but the board was divided on when to do so amid concerns over low borrowing costs fueling rising housing prices. The central bank next meets on Aug. 22.
