South Korea's housing market heating up
South Korean house prices bounced back in 2011, after a slow second half of 2010. Housing starts and transaction volumes were strongly up. House prices rose by 6.86% (2.60% in real terms) during 2011, according to the Korean Statistical Information Service (KOSIS). The Seoul house price index was up by 0.29% (-3.72% in real terms) during 2011, less than the national house price index.
Housing construction permits increased by 42.2% in 2011, to 549,594 permits, according to the Ministry of Land, Transport and Maritime Affairs (MLTM). Apartment building sales were up 41.8% to 285,000 units.
In 2011 South Korea’s economic growth rate slowed to 3.6%, after 6.16% in 2010. This year, the Bank of Korea (BOK) forecasts 3.7% GDP growth, with inflation easing from its present 4.16% .
