Housing prices in South Korea have continued to fall amid the prospect of another hike in interest rates.

(Bloomberg)

[Financial Channel/Comprehensive Report] With soaring interest rates and a slowing economy, housing prices in South Korea are cooling down at an alarming rate, exacerbating the plight of South Korea's housing market.

The Korea Times reported that, according to data from the Real Estate Council of Korea, in the last week of December last year, apartment prices fell 0.76% from the previous week, the largest weekly drop since May 2012, as rising interest rates severely curbed housing market demand.

In addition, the price of the unique leasing method "Danbu" in South Korea is also falling rapidly. It also fell by 1.13% during the above-mentioned period, which is also the largest single-week decline since the record.

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"Potential buyers are still hesitant to buy homes as demand for (housing) falls sharply. There are growing expectations that house prices will fall further," the Real Estate Council of Korea said.

In addition, due to the slowdown in the global economy, South Korea’s exports are decreasing. In addition, rising prices and interest rates have also weakened the willingness of the Korean people to consume and the investment of enterprises. If the rise in interest rates cannot reduce inflation, it may collapse South Korea’s housing market. It will weaken South Korea's economic growth momentum again.

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