New York, Feb. 03, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Residential Real Estate Market in South Korea - Growth, Trends, an Forecast (2021 - 2026)" - https://www.reportlinker.com/p06221846/?utm_source=GNW
The number of private apartments sold in Seoul from January to July of 2021 was 1,895 units, down 86% from the same period last year (13,782 units). In the metropolitan area as a whole, 40,876households were sold, only 60% of the same period in 2020 (68,492 households). Due to the government’s price regulation, Olympic Park Avenue Foret (12,032 households, Dunchon Jugong reconstruction) scheduled for sale in 2020 in Dunchon-dong, Gangdong-gu, has not yet been able to schedule the sale. In the case of Seoul, in 2020, the number of permits and permits, which can determine the amount of housing supply in the next three to five years, was reduced to 58,181 households in 2017, which was half the level (113,131 households) when the Moon Jae-in government was inaugurated.
In January 2021, South Korea’s finance ministry indicated that the expanding housing supply would be a priority, with construction regulations in heavily crowded urban areas being relaxed and redevelopment projects being supported to stabilize the housing market. The government changed its policy direction earlier in 2021, announcing a plan to supply a total of 830,000 housing units nationwide, including 320,000 units in Seoul by 2025.
In Asia, South Korea has developed its own green building certification system, the Green Standard for Energy and Environmental Design (G-SEED). which assesses the eco-friendliness of buildings by evaluating eight environmental areas.
Key Market Trends
Urbanization in the country is driving the market
Asia is urbanizing faster than Europe and North America did. It will likely continue to have the majority of the world’s megacities (urban agglomeration areas with a population of over 10 million). Seoul is one of the largest among these.
The rapid industrialization that Korea experienced has accelerated migration patterns and demographic trends from rural to urban. The country has experienced unbalanced land distribution and demographic patterns brought by rapid population changes since the 1960s called industrialization.
Rapid urbanization and demographic and technological changes are among the cities’ trends. These factors contribute to rising house prices, affordable housing shortages, and limited housing stock in many cities. These problems, in turn, threaten not just financial market stability but also the quality of life and integration, as well as city competitiveness on the national and international scale.
In response, the cities are focusing on creating more housing, including a more diverse range of options so that the housing stock meets the needs of different household types and income levels.
nBy applying the principles of good density mixed, use, and well-connected environments with high-quality placemaking integrated urban environments can be created that cater to a range of income and population groups and contribute to the vibrancy and authenticity of a city.
Affordable housing supply in the country
South Korea ranked third from the bottom, with a Property Affordability Score of 3.94 (December 2021). With relatively low salaries and high apartment costs, South Koreans may find it challenging to get their first step onto the property ladder. However, once they acquire their home, they would benefit from more practical utility and internet costs.
As reported in February 2021, South Korea plans to supply 830,000 housing units in Seoul and other big cities by 2025 through housing redevelopment projects led by state-run agencies, marking the largest-scale supply measure yet envisioned by the Moon Jae-in administration.
The Ministry of Land, Infrastructure and Transport announced its real estate plan, which aims to provide affordable housing in big cities to meet the demand from young people and to tackle soaring home prices.
Of the 830,000 housing units, 323,000 new houses will be built in Seoul and 293,000 in the nearby Gyeonggi Province and Incheon. The Ministry also set out plans to add over 220,000 new homes in major cities, including Busan, Daegu, and Daejeon, which saw hikes in property prices.
nThe focal point of the new measure is to have public developers, such as the state-run Korea Land and Housing and Seoul Housing & Communities, cut red tape and create fast-track approval processes to expand the housing supply swiftly.
Competitive Landscape
The housing or residential development in South Korea is mostly dominated by the public services, with instructions from the Ministry of Constructions. Housing developments in Korea are primarily undertaken through government agencies, such as the Korea National Housing Corporation and the Korea Land Development Corporation.
Dongbu Corporation, Hines, Shinyoung (Greensys), Korea Land and Housing Corporation, Booyoung Group, and HDC Hyundai Development are some of the prominent players in the market. Growing residential and affordable houses construction in the country generates several opportunities for the companies in the industry.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06221846/?utm_source=GNW
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