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| Apartment complexes are seen in this undated file photo. Yonhap |
By Lee Min-hyung
Seoul's apartment prices are showing gradual signs of a rebound on reviving demand driven by an end to the Bank of Korea's (BOK's) rate hike cycle, data showed Thursday.
According to data from the Korea Real Estate Board, the average price of an apartment in the capital city rose by 2.02 percent in June from a month earlier. This is the highest increase since February when the price rose 2.1 percent.
The housing market has been on a path for recovery this year, with Seoul apartment prices attaining a growth of 9.99 percent in the first half combined. This is a noteworthy rebound from a loss of 22.24 percent in 2022 when fears of global monetary tightening weakened investor sentiment to the lowest ebb and pulled down the overall asset market prices.
The average housing price nationwide also took a turn for the rise in July. The figure went up by 0.03 percent last month. This is the first time since May 2022 that the nation's monthly housing price has reported growth.
The rebound has been driven by a change in household sentiment on the housing market, as the global rate hike cycle nears the end. Chances also appear slim for the BOK to return to its once-hawkish rhetoric at a time when the central bank has frozen the key rate for more than half a year since January. The BOK took its last rate hike on Jan. 13 by increasing its key rate by 25 basis points to 3.5 percent.
"Asking prices of major apartment complexes in Seoul and other regions across the nation have risen on the back of growing hopes for a market recovery," an official from the board said.
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