South Korea has experienced an 11-month consecutive decline in house prices, marking the longest period of decreases in 11 years. However, there are indications that the rate of decline is slowing down, with the April data showing a less severe drop compared to the previous month. This suggests that aggressive economic measures, including interest rate adjustments, may be starting to have an impact. The significant decline in house prices over the 11-month period can be partly attributed to a correction following a prolonged period of continuous upward surge.
House prices in South Korea have declined for the 11th consecutive month in April, marking the longest period of continuous decreases in 11 years. However, there are signs that the rate of decline is slowing down, according to data released by the Korea Real Estate Board. The nationwide house price index dropped by 0.47% in April, less severe than the 0.78% drop in March, and indicating the fourth consecutive month of a decelerating decline. This suggests that aggressive economic measures, including interest rate adjustments, are starting to have an impact.
The data shows a significant decline in the house price index over the 11-month period, with a total drop of 8.53%. This is the largest decrease since 2003 when the board began publishing this data. However, this downward trend can be partly attributed to a correction in prices following a prolonged period of 32 months of continuous upward surge that ended in May 2022, as revealed by the data.
In response to the weakened property market, the South Korean government has implemented measures to ease financial regulations for individuals purchasing homes. These measures aim to provide some relief and support to potential homebuyers in a challenging market environment.
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