SEOUL: South Korea's home prices rose at a faster pace in July, as prices in the capital Seoul jumped by the most in more than four years, data showed on Friday (Aug 16), amid growing concerns about financial stability risk stemming from a bullish housing market.
The house transaction price index rose 0.15 per cent in July, faster than a monthly rise of 0.04 per cent in June and the fastest since October 2023, according to the Korea Real Estate Board.
Prices in Seoul jumped 0.76 per cent over the month, the sharpest rise since December 2019, as demand for investment grew in areas undergoing or planned for reconstruction and resulted in more transactions at record-high prices.
Earlier this month, the government unveiled measures to boost supply in the real estate market, targeting the building of more than 400,000 new homes in the next six years to curb steep rises in prices.
In July, the Bank of Korea opened the door for interest rate cuts, but the board was divided over when to act amid concerns about lower borrowing costs fuelling price increases in the housing market. The central bank next meets on Aug 22, 2024. – Reuters
