South Korea's inflation-adjusted home prices fell 1.6 percent in the third quarter of 2025 from a year earlier, ranking 47th among 56 major economies. This marks the 13th consecutive quarter of on-year contraction. Data from the Bank of Korea and the Bank for International Settlements shows prices have been declining since the third quarter of 2022.
South Korea's inflation-adjusted residential property prices declined 1.6 percent in the July-September period of 2025 compared to the previous year, according to data released on March 2, 2026. The figure places the country 47th out of 56 major economies, based on information from the Bank of Korea (BOK) and the Bank for International Settlements (BIS). This downturn represents the 13th consecutive quarter of year-on-year contraction, a trend that began in the third quarter of 2022 after a 3.8 percent increase in the second quarter of that year.
Amid this decline, the South Korean government is intensifying regulations on owners of multiple homes to prevent speculative investments and the conversion of residences for nonresidential uses. Analysts note that the persistent drop in real prices might seem counterintuitive to the public, given attention to nominal price fluctuations and sharp rises in parts of the greater Seoul area. "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 said.
The data underscores ongoing challenges in the housing sector, with government measures aimed at stabilizing the market through targeted controls.
