SEOUL – House prices in South Korea fell 1.98 per cent in December from November, the fastest drop since data releases began in late 2003 and a seventh straight month of decline, data from the Korea Real Estate Board showed on Monday.

That follows a 1.37 per cent loss in November and marked a 4.68 per cent decline for 2022, turning around from a 9.93 per cent gain in 2021, the board said in a statement.

Housing prices are falling sharply around the world as central banks have quickly raised interest rates to fight inflation, cooling the economy and pushing up mortgage rates.

For the latest seven losing months, house prices across South Korea dropped by a cumulative 4.89 per cent, also setting the steepest drop for any seven-month period on record, the data showed.

The government of President Yoon Suk-yeol, who took office in May 2022, has announced measures aimed at lowering taxes and easing other restrictions, largely unwinding the steps taken by his predecessor.

Mr Yoon has said that house prices have some room to ease after a runaway rally in recent years, but that any downward adjustment should be made in an orderly manner and without hurting stability in the financial sector.

House prices in South Korea had risen every month for nearly three years until May 2022. Analysts have blamed the price rise on a combination of the loose monetary policy, a poor supply of new homes and a policy failure. REUTERS