Despite the government's successive announcements of real estate measures, a Bank of Korea analysis found that the rise in Seoul dwelling prices shows little sign of easing. Recently, the upward trend in dwelling prices has spread from the three Gangnam districts (Seocho, Gangnam, Songpa) and Mapo, Yongsan, and Seongdong to outlying areas such as Nowon, Dobong, and Gangbuk.
According to the Financial stability conditions (as of September 2025) report published by the Bank of Korea on the 25th, Seoul apartment prices have continued to rise even after the announcement of the 6/27 measures and the 9/7 measures. The pace of increase slowed from 1.4% in June to 1.1% in July, but compared with past periods when major measures were announced, the deceleration was limited.
In particular, after the 9/7 measures (the third week of September), the rate of price increases grew instead. Comparing the week-over-week apartment price change by district with the first week of May, before the 6/27 measures, the three Gangnam districts widened from 0.15% to 0.16%, and Mapo, Yongsan, and Seongdong expanded from 0.17% to 0.29%. Nowon, Dobong, and Gangbuk also rose from 0.00% to 0.04%, and Geumcheon, Gwanak, and Guro likewise saw a notable rise from 0.03% to 0.06%.
Buying sentiment for dwellings has not cooled either. The Seoul regional sales market consumer sentiment index and the dwellings price outlook CSI fell in July (150→117 and 124→110, respectively) but still exceed the baseline of 100. When the two figures are above 100, it means more consumers expect prices to rise than fall. Notably, in August they rebounded to 123 and 113, respectively, widening expectations for further gains.
The rise in home prices and buying sentiment also affected household lending. Household loans across all financial sectors increased by 4.7 trillion won last month, widening from July's increase of 2.3 trillion won. While other loans fell in both July (-1.9 trillion won) and August (-400 billion won), growth in dwellings-related loans expanded from 4.2 trillion won to 5.1 trillion won over the same period, driving the overall increase.
The Bank of Korea advised, "Although the pace of household debt growth has slowed since the recent government real estate measures, the slowdown in the rise of dwellings prices in Seoul and the greater capital area remains limited, so it is essential to maintain a tightening stance on macroprudential policy to manage market expectations, while closely monitoring movements in dwellings prices and household debt and responding accordingly."
At a briefing held that day, Jang Jeong-su, director general of the Bank of Korea's Financial Stability Department, said, "The spread of the rise in dwellings prices and the transfer to other regions are important factors to consider, and if necessary, of course we should discuss additional measures with the government," adding, "As for the October currency policy, there is still time, so a comprehensive decision will be made considering financial stability including real estate and household debt, the economy, and prices."