South Korea Property Rally Builds, Keeping Central Bank on Guard

South Korea’s property market rally gained further momentum, reinforcing a decision by the central bank to refrain from lowering interest rates as it waits for government housing measures to cool demand.

Apartment prices in Seoul climbed 0.5% in the week through Oct. 20, compared with a 0.54% increase notched over a two-week period to Oct. 13 that included an extended holiday, according to Korea Real Estate Board data released Thursday. The latest figures signal persistent demand for apartments in Seoul, stretching the rally to a 38th week.