February 04, 2022 08:33
The Bank of Korea expects apartment prices to remain largely unchanged for at least a year.
The central bank in a study put the country's housing price index at 100, meaning they will neither rise nor fall over the coming months.
The BOK surveys 2,500 households to gauge the index and the latest reading is the lowest since May 2020, when it stood at 96. But it surged to 129 in August last year when apartment prices soared, only to decline over the next five months.
"The result appears to reflect the recent decline in the number of apartment transactions," a BOK official said. "Rising interest rates and curbs on household loans were among the main reasons."
Respondents also forecast a steep rise in interest rates in the first half of this year.
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