South Korea's top economic policymaker on Wednesday reiterated his warning that high-flying housing prices could undergo corrections as prices of homes in the greater Seoul area have excessively risen.

Finance Minister Hong Nam-ki said the government will put policy priority on expanding the supply of residential properties in a bid to curb speculative demand for homes.

"A rise in housing prices in the greater Seoul area has been led by expectations for easing rules on the redevelopment of homes and plans to expand (railway networks)," Hong said at a government meeting on the housing market.

Citing reports by the central bank and other institutions, Hong warned that the property market is overheated and housing prices could fall at any time as they have excessively risen.

Hong repeated his warning that housing prices could fall as prices of apartments in the greater Seoul area have risen to levels just before their previous peaks.

But he said amid skyrocketing housing prices, a leading indicator gauging housing demand in the coming months fell in recent weeks in a sign that excess demand for homes may ease.

Amid sluggish housing transactions, the growth of home prices has picked up in recent months in Seoul on expectations of eased rules on the reconstruction of old apartments in the capital.

The government has unleashed a series of comprehensive measures to stem the rising home prices, but the regulations resulted in only a short-term letup. (Yonhap)