Data released on Monday showed that South Korea's real housing prices, adjusted for inflation, fell 1.6% year-on-year in the third quarter of 2025, ranking 47th among 56 major economies.

According to figures from the Bank of Korea and the Bank for International Settlements (BIS), the decline in real residential property prices during the July–September period last year marked the 13th consecutive quarter of year-on-year decrease.

South Korean home prices have been falling continuously since the third quarter of 2022. In the second quarter of that year, prices rose 3.8% compared to the same period a year earlier, but then began to decline.

At the same time, the South Korean government is intensifying efforts to tighten regulations on owners of multiple properties in order to curb speculative investment and the use of properties for non-residential purposes.

Analysts pointed out that the continued decline in real housing prices, which are adjusted for inflation, may confuse the public, as the movement in nominal prices—not adjusted for inflation—and the sharp rises in certain parts of the Seoul metropolitan area are more noticeable.

An official from a commercial bank stated, "The increase in housing prices in the latter half of last year was mainly concentrated in certain parts of the capital area, highlighting the growing polarization of the real estate market."