Seoul: South Korea’s inflation-adjusted home prices fell 1.6 percent in the third quarter of 2025 from a year earlier, ranking 47th among 56 major economies, data showed Monday. The decline in real residential property prices during the July-September period marked the 13th consecutive quarter of on-year contraction.
According to Yonhap News Agency, prices have been on the decline since the third quarter of 2022, when they turned negative following a 3.8 percent on-year increase in the second quarter of that year. The data comes as the South Korean government steps up efforts to tighten regulations on owners of multiple homes to curb speculative investments and the use of homes for nonresidential purposes.
Analysts said the continued decline in real or inflation-adjusted home prices may feel strange to the public, as nominal price movements without adjusting for inflation, as well as sharp gains in parts of the greater Seoul area, grab attention. “Price increases in the second half of last year were largely concentrated in select districts within the capital region, highlighting deepening polarization in the housing market,” a commercial bank official said.