Bank of Korea(BOK) Gov. Rhee Chang-yong expressed uncertainty regarding the future of real estate prices in the country after the central bank decided to hold its key interest rate at two-point-five percent due in part to the overheated housing market.

After the Monetary Policy Board voted on Thursday to freeze its benchmark rate for a third consecutive time, Rhee told a press briefing that although household debt risks are showing signs of stabilizing, the housing market in the Seoul metropolitan area is showing signs of overheating again.

Rhee explained that since the government announced additional real estate measures, including tighter loan limits, the board decided that in terms of monetary policy, it was best not to fan expectations of a housing market price jump.

The BOK chief stressed that real estate prices in the greater Seoul area are too high, considering income levels and the need to maintain social stability, and that he believes current real estate prices are “eroding economic growth.”

"I don't think the rise in real estate prices will slow down soon, but I'm watching it carefully," he said, adding that all policies should focus on consistently stabilizing real estate prices.

Four of the six board members, excluding Lee, voiced the need to keep open the possibility of further rate reductions in the next three months.

He also downplayed concerns of a bubble in the recent bullish stock market, saying any jitters are completely unwarranted.