Korean homes growth goes on, but future uncertain
South Korean house prices have continued to grow – but an uncertain period looms, according to analysts
House prices were 0.2 per cent higher in February 2012 than in the previous month, according to data published by the Bank for International Settlements.
Prices were up 5.9 per cent on February 2011, but this represented a slowing of the rate of growth.
January 2012 prices were 6.5 per cent higher than the same month a year earlier.
The Royal Institution of Chartered Surveyors warned that this slowdown was likely to continue.
‘As house price growth continues to moderate, and activity is still weak – partly as a result of the government’s stringent anti-speculation measures to forestall the risk of a property bubble – the positive turnaround in sentiment in Korea’s housing outlook is unlikely to be seen in the months ahead,’ it warned in a market update.
‘Furthermore, the evolution of major housing indicators will depend crucially on the overall economic performance.’
RICS said data for the fourth quarter of 2011 showed Korean economic growth slowing.