South Korea’s Housing Market Review

House prices in South Korea are rising again, after falling in the second half of 2010. Over the three months to April 2011, nationwide house prices increased by 2.62% (1.34% in real terms), the highest quarterly rise since March 2007, according to the Korean Statistical Information Service. House prices rose by 4.15% during the year to April 2011. However, when adjusted for inflation, house prices were actually unchanged in April 2011 from a year earlier. The government plans more measures to help the housing market, including slashing home purchase taxes from 2%-4% to 1%-2%.  In August 2010, the government eased restrictions on real estate lending.