Manya Rathore
Research expert covering India
Housing market in South Korea - statistics & facts
The South Korean housing market has seen a slow path toward stabilization in the last several months. The market was hit hard when the Bank of Korea increased the base rate multiple times from the end of 2021 to the beginning of 2023 in response to COVID-related market impacts and inflation. A certain degree of price stabilization in housing was achieved in the last half of 2023, but several factors have pointed toward slower market recovery. Housing prices are still declining, albeit less so than at the end of 2022. Although the government plans to add more than 800,000 housing units nationwide by 2025, increases in construction costs from a contracted global supply chain and high real estate project financing loan rates have delayed the supply of housing. Nevertheless, improvement seems within reach for the housing market with the right policy implementation to alleviate such concerns.
