South Korea records the sharpest fall in housing prices in 19 years

The Korean Real Estate Commission announced that housing prices in South Korea fell in October by the most in at least 19 years. This raised expectations that the Bank of Korea (BOK) would slow down interest rate hikes in the coming weeks.

Housing prices in South Korea fell 1.2% in October from the previous month, according to the commission. This was the sharpest monthly decline since data collection began in November 2003, reflecting steadily rising mortgage rates that are hurting demand.

In Seoul, apartment prices fell 1.24%, the largest decline since December 2008 and the ninth consecutive month of decline.

The report said the statewide housing price index fell 7.13% in the January-September period. This was the largest year-on-year decline since data collection began in 2006.

The BOK is expected to raise interest rates by another 0.25% on November 24, after raising a total of 2.5% since August last year to control inflation.

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