The Bank of Korea forecasts that home prices will stabilize next year.
 
In a recent outlook report, the central bank said that growth in home transaction prices will slow down next year with the cost of jeonse expected to post a modest increase. Jeonse is a Korean rental system that involves a large lump sum security deposit.
 
The BOK report assessed that apartment prices have been stable since strengthened real estate regulations were announced in August.
 
It said the housing market will slow even more next year due to a larger housing supply, the government's determination to stabilize home prices as well as expected interest rate hikes of major economies.
 
Leading mortgage lender Kookmin Bank said the average home transaction price nationwide inched up just zero-point-08 percent in September from the previous month.
 
The government is scheduled to issue a set of measures to curb mounting household debt on Tuesday which could apply more downward pressure on housing prices.