Highest drop in housing price increase expectations in 3 years due to loan regulations

The outlook on housing prices has declined tangibly.

According to the Bank of Korea the housing price forecast index for July stood at 109 down 11 points on month.

While the index remains higher than the long-term average of 107 its reading for this month is the largest monthly decline in three years and reflects a substantial fall in the number of people who believe home prices will rise over the next year.

Bank officials are linking this latest finding to the recent implementation of real estate loan regulation by the Lee Jae Myung administration