According to Jinshi, Nomura Securities analyst Jeong Woo Park said that South Korea's tightening macroprudential measures appear to be curbing housing prices, which supports the 25 basis point interest rate cut in October. Apartment price increases in Seoul are slowing, with weekly price inflation falling to 0.13% in the last week of September from a peak of 0.32% in the second week of August.
Park added that the Bank of Korea's financial stability report suggests the measures have begun to impact the property market, but it remains cautious about the sustainability of the slowdown. Despite an expected rate cut in October, Nomura believes the property market could constrain monetary policy. Despite weak consumption and a global easing cycle, it expects the Bank of Korea to cut rates only once this year and two more times by the end of 2025.