UK Real Estate Firm: "South Korea's House Prices Soar 24% in Q3... Ranked 1st Among 56 Major Countries"

[Image source=Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] A UK real estate information company announced survey results showing that South Korea had the highest house price increase rate among 56 major countries worldwide in the third quarter.

According to the "Global House Price Index" released on the 18th (local time) by Knight Frank, a UK real estate information company, South Korea's housing prices in the third quarter rose 23.9% compared to a year earlier. This figure is based on real terms adjusted for inflation and is the highest among the 56 major countries surveyed.

Following South Korea, house prices increased in Sweden (+17.8%), New Zealand (+17.0%), Turkey (+15.9%), and Australia (+15.9%). However, in nominal terms, South Korea's house price increase rate was 26.4%, ranking second after Turkey (+35.5%). Turkey experienced severe inflation with a third-quarter inflation rate of 19.3%, resulting in a large gap between nominal and real increase rates.

South Korea's nominal house price increase rate jumped significantly to double digits in the third quarter, following 5.8% in the first quarter (29th among 56 countries) and 6.8% in the second quarter (31st among 55 countries) this year. The overall average nominal increase rate among the 56 countries was 9.6%, maintaining a high level following 9.2% in the second quarter. Notably, house prices rose in 54 countries except Malaysia (-0.7%) and Morocco (-2.3%).

Knight Frank pointed out that in some countries, the house price increase trend may have peaked. Among the 56 countries, 18 saw their nominal house price increase rates in the third quarter decline compared to the second quarter. Among these, New Zealand and the UK showed the highest increase rates after the COVID-19 outbreak in the second quarter but slowed down in the third quarter.

Knight Frank stated, "Rising interest rates, changes in property taxes, and concerns about price affordability are contributing to the slowdown in increase rates in some countries. However, unless the impact of the COVID-19 Omicron variant becomes significant, the global housing price increase trend is expected to continue next year."