Apartment prices in South Korea fell to a five-year low in the second quarter as sky-high prices in Seoul show signs of cooling down and prices in certain rural regions continue to slide further.
According to Bank of Korea on Sunday, apartment prices in the country fell 0.3 percent in the second quarter against the previous three months, the biggest drop since the first quarter of 2013 when prices saw a 0.7 percent decline.
This was largely due to the sharp fall in regions outside of Seoul, where apartment prices dropped 0.9 percent, the largest decline since the first quarter of 2004 when the bank started compiling such data.
South Gyeongsang Province fell 2.3 percent in the second quarter and the southern port city of Ulsan 2.5 percent. Housing prices in these regions have been on a downward trend as their mainstay shipbuilding industry has taken a hit in recent years.
Prices in North Gyeongsang Province and Chungcheong Province have also fallen by more than 1 percent.
Meanwhile cities of Daegu and Gwangju and the administrative capital of Sejong have seen an uptick in prices.
Seoul also witnessed a 0.8 percent increase, extending its upward trend for the fourth straight year. But the growth pace has cooled from the 3.6 percent jump in the first quarter as policymakers released a series of tightened regulations to contain the buying frenzy.
The central bank expects housing prices to stabilize throughout the latter half on increased supply and anticipated interest rate hikes.
By Yoon Won-sup and Kim Hyo-jin
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