Housing Prices Rise 25.5% from Jan. 2020 to May 2022
The Bank of Korea announced on Sept. 22 that South Korea’s housing price rose 25.5 percent from January 2020 to May this year and the rate of increase is the 15th-highest in the OECD.
“When it comes to the pace of increase in housing price-to-income ratio, South Korea is third-highest among 33 countries,” it said, adding, “Last year, the ratio of South Korean households with mortgage loans was 30.7 percent, slightly higher than 21 countries’ average of 29.5 percent.”
“As for the effects of interest rates on mortgage loans, South Korea showed the eighth-largest extent behind Poland, Norway and so on,” it explained, continuing, “However, the current fall in housing prices is unlikely to cause more losses of financial institutions as the loan-to-value ratio is relatively low and the government is strengthening related regulations.”