Decline in Apartment Purchases in Seoul Raises Odds of Bank of Korea Rate Cut
A recent report has revealed a significant decline in apartment purchases in Seoul, raising speculations about a potential interest rate cut by the Bank of Korea. In the past month, the volume of real estate transactions in the capital dropped by 16.9%, marking the sharpest decrease since the beginning of the current year. This drop comes amid ongoing rising housing prices, which had previously caused concern among authorities and analysts.
Economists attribute this decline to the government's regulatory measures aimed at adapting financial conditions for borrowers. Interest in new real estate purchases is also waning due to high mortgage rates, which poses a threat to economic recovery and may compel the Bank of Korea to reassess its monetary policy.
Some experts warn that continued inactivity in the market could lead to more serious problems within the country's economy, as real estate is one of the key drivers of economic growth. Given these circumstances, investors anticipate that the Bank of Korea may consider the opportunity to cut interest rates to stimulate demand and restore activity in the real estate market.
Thus, the decline in apartment purchases in Seoul stands as a key indicator for determining the future economic policy of the country and may have long-term repercussions for South Korea's economy.
