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Housing prices fall in all regions but Seoul in H1: BOK

Published: 28 Jul. 2025, 17:36 Updated: 28 Jul. 2025, 18:11

This photo taken July 24 shows apartment buildings in Seoul. [NEWS1]

Housing prices fell in all regions of Korea except Seoul and its surrounding metropolitan area in the first half of 2025, data showed Monday.

The average monthly housing sale price in the greater Seoul area rose by 0.1 percent during the first six months of the year compared to end-December, according to data compiled by the Bank of Korea (BOK).

The growth was led by surging home prices in Seoul and parts of the greater capital area, fueled by easing financial conditions and expectations of further price increases under the new liberal government. In an effort to curb prices, the government implemented tighter lending regulations in late June.

Seoul, in particular, reported a 0.39 percent increase in housing prices over the six-month period.

In contrast, other regions experienced a decline in housing prices amid an economic slowdown.

The average monthly housing sale price in the country's southeastern regions fell by 0.11 percent compared to end-December, widening from a 0.08 percent decline recorded in the second half of 2024.

In the eastern province of Gangwon, the average monthly home price declined 0.1 percent, following a 0.02 percent drop in the previous half.

Prices in the central Chungcheong region also fell 0.06 percent in the first half, with the decline widening from a 0.04 percent fall in the second half of 2024.

"The fall in housing prices in non-Seoul areas is attributable to the prolonged slump in the housing market, where unsold housing units have continued to accumulate amid domestic uncertainties," a BOK official said. "The housing price gap between the Seoul and the non-Seoul regions has widened."

Meanwhile, the BOK forecasts that the regional economies across Korea are unlikely to deteriorate in the second half compared with the first half.

"Regional economies are expected to show slight improvement or remain stable in the second half, supported by supplementary budgets, stimulus measures and improved consumer sentiment," the official said.

The government has implemented an extra budget of 31.8 trillion won ($23.06 billion), following a 13.8 trillion-won stimulus approved in May, in an effort to boost private spending and sustain growth momentum.

Yonhap