It marked the first time that the index stood in the 70 percent range for the fourth consecutive month since 2014.

Park Cheol-han, an associate research fellow at the institute, said the decline suggested that the construction business is gradually slowing down.

The government has recently said that starting next January, loan limits in Seoul and other government-designated areas will include the principal of a borrower's existing homes in a move to rein in real estate speculation.

In November, South Korea's central bank raised the base rate to 1.5 percent from a record low of 1.25 percent for the first time in more than six years amid clear signs of an economic recovery.(Yonhap)