Seoul: South Korea's inflation-adjusted home prices fell by 1.6 percent in the third quarter of 2025 compared to the same period the previous year, placing the nation 47th out of 56 major economies, as revealed by recent data.
According to Yonhap News Agency, this decline in real residential property prices during the July-September period marks the 13th consecutive quarter of year-on-year contraction. This trend has persisted since the third quarter of 2022, when home prices first turned negative following a 3.8 percent on-year increase in the second quarter of that year.
The data emerges as the South Korean government intensifies efforts to impose stricter regulations on owners of multiple properties in a bid to curb speculative investments and prevent the use of homes for nonresidential purposes.
Analysts have noted that the ongoing decline in real or inflation-adjusted home prices may feel unusual to the public. This is because nominal price movements, which do not account for inflation, and sharp gains in certain areas of the greater Seoul region, continue to attract 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 commented.