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Real estate bubble in Seoul will continue


By Lee Min-hyung

People expect real estate prices in Seoul to keep rising next year despite government regulations imposed to stabilize the soaring cost of housing, a survey showed Wednesday.

The Bank of Korea's (BOK) consumer survey index (CSI) on the housing price outlook for November came in at 120, up five points from a month ago. The higher the index is, the more likely consumers believe prices will go up.

"The housing price outlook index increased because the prices of apartments nationwide, particularly in Seoul, have continued to rise," a BOK official said.

The figure is the highest since September last year when the government introduced tight regulatory measures, including an increase in real estate taxes on those who own more than two houses.

At that time, the government explained the regulations were aimed at stopping the rich from engaging in real estate speculation and stabilizing housing prices in some speculation-prone areas.

But the restriction ended up further raising apartment prices in the capital.

According to other data released by the Korea Appraisal Board last week, the average apartment price in Seoul has risen consecutively over the past 21 weeks.

"With the housing supply in Seoul and its surrounding area declining, a shortage has recently been evident on top of rising demand," said Yoon Ji-hae, a senior researcher at Real Estate 114, an online real estate data provider.

The housing market researcher also noted that the average price in Seoul rose by 0.11 percent last week, up 0.02 percent from the previous week.

All eyes are on what additional regulations the government will impose after President Moon Jae-in recently expressed his strong determination to introduce further restrictions in an all-out attempt to stabilize the real-estate market.



By Lee Min-hyung

People expect real estate prices in Seoul to keep rising next year despite government regulations imposed to stabilize the soaring cost of housing, a survey showed Wednesday.

The Bank of Korea's (BOK) consumer survey index (CSI) on the housing price outlook for November came in at 120, up five points from a month ago. The higher the index is, the more likely consumers believe prices will go up.

"The housing price outlook index increased because the prices of apartments nationwide, particularly in Seoul, have continued to rise," a BOK official said.

The figure is the highest since September last year when the government introduced tight regulatory measures, including an increase in real estate taxes on those who own more than two houses.

At that time, the government explained the regulations were aimed at stopping the rich from engaging in real estate speculation and stabilizing housing prices in some speculation-prone areas.

But the restriction ended up further raising apartment prices in the capital.

According to other data released by the Korea Appraisal Board last week, the average apartment price in Seoul has risen consecutively over the past 21 weeks.

"With the housing supply in Seoul and its surrounding area declining, a shortage has recently been evident on top of rising demand," said Yoon Ji-hae, a senior researcher at Real Estate 114, an online real estate data provider.

The housing market researcher also noted that the average price in Seoul rose by 0.11 percent last week, up 0.02 percent from the previous week.

All eyes are on what additional regulations the government will impose after President Moon Jae-in recently expressed his strong determination to introduce further restrictions in an all-out attempt to stabilize the real-estate market.


Lee Min-hyung mhlee@koreatimes.co.kr


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