In South Korea, the real estate market not only involves housing issues that concern the people, but is also one of the barometers that reflect the macro economy. In the past year, South Korea's residential real estate market has been rising, trading prices have hit new highs in the past 14 years, and the year-on-year increase in housing rental prices has also reached a new high in nine years.
1. The Korean residential market is hot, and annual rental prices have increased significantly.
Mr. Zhao, 30 years old this year, rents a house in an 8-story old building in the south suburbs of Seoul. In 2020, the annual rent of this type of residence increased by 5.61% year-on-year. The funds to be handed over to the landlord for one-time increase to 120 million won, which is approximately RMB 710,000. Mr. Zhao said that if this continues, it is better to pay for a down payment to buy a house.
In 2020, South Korea passed an amendment to the Lease Law, prohibiting landlords from termination of contracts in the middle. As a result, many landlords immediately raised the starting price of annual rents, and the total rental prices for the whole year also decreased significantly, which changed some rental demand to housing purchase demand.
More importantly, South Korea implemented a policy called "lowest in history" in 2020, which further stimulated the housing purchase craze, and residential transaction prices in Seoul and other places were pushed up across the board. Taking the Gangnam area of Seoul, where every inch of land is valuable, as an example, last month, a second-hand house with a medium-sized apartment building with a usage area of about 84 square meters was sold at a transaction price of 3.45 billion won, which is approximately RMB 20.57 million, which means RMB 245,000 per square meter, which is a "sky-high" housing.
Real Estate Agency, Gangnam District, Seoul, South Korea: Compared with the beginning of 2020, the transaction price has risen by about 300 million to 400 million won (approximately RMB 1.8 million to 2.4 million), continuously setting new historical highs. Under the influence of panic home buying psychology, housing prices should continue to rise.
The latest report from South Korea's real estate research institutions shows that in 2020, the largest increase in residential rental prices in South Korea increased by nearly 7% year-on-year, the largest increase in nine years. Residential transaction prices rose 8.35% year-on-year, the highest in 14 years, and the upward momentum is spreading across the country with the metropolitan area as the center.
2. In 2020, the South Korean commercial real estate market was uneven and hot and cold
. In contrast to the general rise in residential market prices, the South Korean commercial real estate market was uneven and hot in 2020, showing a polarization trend.
reporter found that after the famous Itaewon business district in Seoul, after the nightclub cluster infection incident occurred here in the first half of 2020, the traffic in the business district dropped sharply and the vacancy rate of stores increased.
The global food street behind the reporter was once one of the most prosperous streets in Itaewon, but now you can see that 4 of every 10 stores are vacant. The reporter learned that the monthly rent of these stores has decreased by about 30% compared with before the outbreak of the epidemic, but there are still no shops willing to settle in.
is the opposite of the business district. In areas recognized by Korean investors such as Gangnam-gu, Seoul, the popularity of commercial real estate has increased instead of falling. In the first three quarters of 2020, the transaction volume of high-end office buildings in Jiangnan District increased by more than 1.5 times year-on-year, setting a new high in the past five years.
Real Estate Researcher Jin Yuemei, South Korea Liuzhen Investment Securities: Take smaller business districts and commercial buildings as an example. If investors blindly take out loans to buy, they will have to bear considerable risks. For example, when the vacancy rate continues, once the interest rate rises, the asset price will shrink relatively.
Local industry insiders said that on the one hand, due to the expansion of market uncertainty under the epidemic, investment in commercial real estate has continued to concentrate on high-quality assets; on the other hand, although the demand for traditional commercial real estate such as catering, retail, and hotels has deteriorated due to the epidemic, driven by e-commerce and home office, the demand for new commercial real estate such as logistics centers and data centers has entered an unprecedented active period. It is expected that before the epidemic situation completely improves, the demand for new commercial real estate such as "satellite offices" outside the city's central business district will increase significantly.
Source: CCTV Finance
