Home prices nationwide dropped in June for the first time in nearly three years.

According to data released on Friday by the Korea Real Estate Board, home sale prices across the country edged downward zero-point-01 percent in June compared to the previous month.

It marks the first on-month drop in two years and ten months since August 2019.

Apartment prices in particular came down zero-point-one percent last month, doubling the decrease recorded in May.

The moderate downturn is driven by the shrinking number of transactions in the housing market due to tough loan regulations and interest rate hikes.

The prevailing view is that home prices will continue to undergo adjustments for some time amid global recession fears and skyrocketing inflation.

The prices of deposits on lump-sum “jeonse” contracts also dropped by zero-point-02 percent last month.

In contrast, monthly rent continues to rise, posting a zero-point-nine percent gain during the first six months, further straining the finances of renters.