South Korea's Land Minister Kim Yun-deok said Monday that the housing market is "regaining its sanity," pointing to falling prices of high-end apartments in Seoul.
Kim shared a news article analyzing price trends for apartments in Gangnam and along the Han River belt on his Facebook page. "Listing prices for expensive Seoul apartments have been declining recently," he wrote. "Apartments priced in the 6 billion won range are now in the mid-5 billion won range, while those in the 3 billion won range are settling into the high-2 billion won range, though variations exist depending on floor and building."
The minister expressed satisfaction with current market conditions. "Listings are increasing, the sharp price surge has been curbed, and the pace of apartment sales and jeonse price increases is slowing nationwide—this is an entirely normal process," he said.
Kim criticized the concentration of wealth in real estate. "A 'Republic of Real Estate' where all wealth flows into property is simply wrong," he said. "If all our unlimited potential ends up being funneled into housing prices, we cannot expect a dynamic future for Korea."
The minister pledged to maintain the current market stabilization trend. "As the ministry responsible for housing supply, we will make every effort to quickly deliver quality housing that the public wants and identify additional supply sources," he said. He added that the government would deploy all policy resources to solidify market stability, including ending the moratorium on heavier taxes for multiple-home owners.
Meanwhile, Seoul apartment prices continue to rise but at a slower pace for the third consecutive week amid government pressure, including reviews of lending restrictions on multiple-home owners. According to the Korea Real Estate Board, the average weekly increase in Seoul apartment prices was 0.15% as of February 16, down 0.07 percentage points from the previous week. The slowdown is attributed to multiple-home owners listing properties at reduced prices in response to intensified government measures.