Home prices expected to skid 1.5 pct next year

December 22, 2023

Home prices in South Korea are forecast to skid 1.5 percent on average next year, hit by high interest rates, rising inflation and market anxiety over real estate project financing, a report showed Friday.

Although average home prices are expected to decline next year, housing prices in Seoul are predicted to rise 1 percent in 2024, the Korea Housing Institute (KHI) said in the report.

The average price of “jeonse,” a two-year home rental system unique in South Korea, is forecast to advance 2.7 percent next year due to a lack of housing supply, it said.

In particular, the jeonse price in Seoul is predicted to grow 4 percent next year, according to the report.

The KHI said around 650,000 homes will be traded next year, up 20 percent from this year but still lower than the annual average of 980,000 residential properties traded between 2017 and 2021.