South Korea’s housing market recorded its biggest monthly drop since the global financial crisis as the central bank’s policy tightening cycle enters its second year.
(Bloomberg) — South Korea’s housing market recorded its biggest monthly drop since the global financial crisis as the central bank’s policy tightening cycle enters its second year.
The national price index fell 0.29% in August from a month earlier, marking the biggest decline since early 2009, data from the Korea Real Estate Board showed Thursday. While from a year earlier prices grew 2.6%, it was their ninth straight slowing.
During the 2008-2009 crisis, Korea’s property market fell for five months in a row, declining as much as 0.78% on a monthly basis. The Bank of Korea has raised rates by 2 percentage points since August last year and a separate survey of consumers indicates the outlook is the most pessimistic in data dating back to 2011.
Gangnam Wobbles as Korea’s Rapid Rate Hikes Hit Elite Apartments
Housing markets across the world are taking a hit from central bank tightening that aims to curb inflation. Korea began raising rates earlier than most developed nations and the BOK is expected to execute another hike when it meets next month.
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