Rise in housing prices likely to slow following gov't regulation: BOK

The rise in Korea's housing prices is set to partially slow in the second half of 2025 following major regulatory measures implemented in June, a central bank report said Sunday. According to the Bank of Korea, while apartment prices were expected to rise 6 percent by end-December compared with end-June, the government measures were estimated to reduce the increase by 1.6 to 2.1 percentage points. In an effort to curb rising household debt and housing prices, the government in late June imposed a 600 million-won ($428,800) cap on mortgage loans for property purchases in the capital region, while suspending home-backed loans for multiple-home owners. The volume of mortgage loans, which was originally projected to grow 5 percent over the period, will instead expand at a slower pace, by 1.2 to 1.6 percentage points, it added. "Enhancing macroprudential policies had a meaningful impact in limiting the growth of apartment prices and mortgage loans, but it was not sufficient to restrain the overall upward trend," the report said. The bank added that such macroprudential policies should take plaWeiter zum vollständigen Artikel bei Korea Times Weiter zum vollständigen Artikel bei Korea Times