Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok, second from right, speaks as he presides over a meeting of real estate policy-related ministers at the Government Complex Seoul, Thursday. Yonhap

The government is urged to curb home prices in Seoul as they have been accelerating at a faster pace for months and heighten concerns over the overpriced housing market in the nation's most densely-populated city.

Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok convened a meeting of real estate policy-related ministers on Thursday to discuss possible measures to bring down the city's housing prices.

Such a meeting took place for the first time in 10 months after multiple data showed that prices of apartments, the country's most popular type of residence, have mostly recovered from stalemate and have been climbing steeply in Seoul.

"The government is closely monitoring the housing market in Seoul as the pace of price growth in apartments is expanding," he said during the meeting at the Government Complex Seoul, adding, "The government will promptly take action when it detects demand for speculation and other signs of overly heated transactions."

To increase housing supply in Seoul and the surrounding area, Choi said the government will lift restrictions on greenbelts or development-restricted areas in the second half of the year for 20,000 new homes.

The government also plans to supply 236,000 new homes at lower-than-market prices by 2029.

Apartment buildings are seen from Mount Nam in Seoul, Monday. Yonhap

According to the Korea Real Estate Board, Thursday, apartment transaction prices in Seoul gained for the 17th consecutive week. Managed by the Ministry of Land, Infrastructure and Transport, the board is responsible for providing accurate property data to ensure credibility on state-assessed housing prices.

In particular, the pace of price growth was the highest in nearly six years. It gained 0.28 percent, which was the highest increase since the second week of September 2018, when the growth rate was 0.45 percent.

Separate data from a website run by the Seoul Metropolitan Government showed the number of monthly apartment transactions reported for June totaled at 5,957.

While the number already marked the highest for any month this year, it is estimated to go up as transactional data for June has not been fully compiled.

Under the circumstances, a real estate expert deemed Seoul's housing price is likely to continue going up as the Bank of Korea (BOK) weighs the timing of a rate cut.

"The BOK is expected to lower its policy rate at least once this year in line with the economic growth and eased inflation," said Kwon Dae-jung, a real estate professor at Sogang University.

He referred to hike in 2024 growth projection for the Korean economy, which the government revised up from 2.2 percent to 2.6 percent, and eased inflation that remained below 3 percent for the third straight month as of June.

The central bank held its key rate steady at 3.5 percent for the 12th straight time, July 11, noting it will maintain "a restrictive monetary policy stance for a sufficient period of time" as household debt runs high.

Nevertheless, it said it will "examine the timing of a rate cut" as inflation is easing to its yearly target goal of 2 percent.

"The lowered rate means more people will be taking out loans from banks to buy a house in Seoul, and the government should come up with countermeasures to stabilize the city's housing market," Kwon said.

Kim Je-kyung, a chief consultant at real estate agency Tumi, believes stabilizing the market is essential to cope with a widening gap in housing prices between Seoul and rural areas.

He noted even those who live in provincial areas are seeking to buys homes in the capital for investment purposes.