SEOUL, Sept. 8 (Xinhua) -- Apartment prices in South Korea continued to rise as demand for rebuilt apartments got strong amid record-low interest rates, Yonhap news agency reported on Thursday citing the Korea Appraisal Board.
Housing prices here are believed to have entered a long-term downward trend in the past years, but Bank of Korea (BOK)'s record-low interest rates are feared to have boosted bubbles in the home market.
The government announced a plan last month to reduce home supply for fear of an abrupt fall in home prices. The BOK cut its benchmark interest rate by 25 basis points in June to an all-time low of 1.25 percent.
Apartment prices in capital Seoul rose 0.13 percent on Monday from a week earlier, after gaining 0.11 percent in the previous week. It marked the fastest growth in about 9 months.
Prices in central Gangnam district jumped 0.33 percent on strong demand for rebuilt apartments. Those in Seoul and its suburban metropolitan areas inched up 0.07 percent.
Home prices are rising in recent months on the back of record-low interest rates and the government's support to bolster the real estate market.
However, it may cause bigger side-effects as the country's aging population and its entrance into a prolonged growth could bring about a faster fall in home prices.
