Absolute shortage of supply... House prices will rise next year

The rise in house prices, which rose sharply this year, is expected to continue next year. This is because ultra-low interest rates and abundant circulating funds are stimulating the real estate market, and there is an absolute shortage of occupants in Seoul.

 

Lim Byeong-cheol, senior researcher at Real Estate 114, said, "The continuing imbalance in supply and demand for cheonsei is expected to act as a pressure to increase sales along with the increase in jeonse prices." "It seems to be a factor." Myung-sook Ahn, head of the Real Estate Investment Support Center of Woori Bank, said, "The government is giving a signal that the supply is continuously increasing, but it is true that the number of occupants will decrease from next year." It can act as a ". Whether or not the global economy recovers after Corona 19 and changes in liquidity in the market are considered variables to be noted in the real estate market next year. Young-jin Ham, head of Jikbang Big Data Lab, said, "The base interest rate was lowered twice this year, and the low interest rate, abundant liquidity, and rising jeonse prices acted as downward rigidity to support the trading price. The absence of alternative investment destinations continues.”

 

Shin Jung-seop, vice president of Shinhan Bank's Real Estate Investment Advisory Center, said, "It seems that the corona-related risks will be mitigated next year, but it will take time for the real economy to recover." It is difficult to finish the liquidity market enough to change preferences,” he predicted. However, it is analyzed that the increase like this year will be limited due to the effects of the economic slowdown due to the prolonged Corona 19 and the increase in multi-homed sales due to the burden of ownership tax. The Korea Institute of Construction Policy and Management predicted that next year's housing sales price will increase by 2% and the Woori Financial Management Research Institute by 2.71%. This is lower than this year's increase rate (7.44%). Professor Shim Gyo-eon of Konkuk University said, "Basically, consumer sentiment changes rapidly depending on supply and demand in the real estate market," he predicted. "Because the burden on the peak of the uptrend is more important now, there is a high possibility that it will move from the consolidation zone next year."