South Korea’s property prices are expected to dip next year
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South Korea’s property prices are expected to dip next year

SOUTH KOREA’S property market is expected to experience a downturn next year, experts said, although some predict an increase in prices in Seoul.

A survey released on Wednesday showed an overwhelming majority of 112 people specialising in the industry believe the housing market will slump in non-metropolitan regions, with a more than five percent price drop forecast by nearly 20 percent of the people polled, Yonhap reported.

The results of the survey, which was included in a report from KB Financial Group’s research institute found that 70.5 percent of the people polled predicted a decline in home prices next year.

The largest group (31.3 percent) expected prices to drop between one and three percent, while 17 percent of those polled predicted a drop of three to five percent.

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However, in Seoul, the country’s capital, 58.9 percent of the experts said the prices were expected to increase.

Home transactions were also expected to cool in 2019, with 64.3 percent of those polled agreeing with the prospects. For non-capital regions, 77.7 percent of the experts believed the same.

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An apartment complex under construction. Condominiums and apartment buildings make up the majority of living spaces in densely populated South Korea. Source: Shutterstock

Other surveys revealed similar results such as KB Financial’s canvass of 512 realtors.

In the separate poll, 76.3 percent said home prices were expected to fall.

The only difference in the second poll was that the majority of realtors (70.2 percent) said they expected to see prices in Seoul drop in 2019.

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In terms of the volume of transactions, a majority of realtors (72.5 percent) said it would downsize in Seoul, a figure which was higher than the rest of South Korea.

According to Yonhap, another poll of 72 private bankers who service the rich (73.6 percent) said home prices will fall for all parts of the country.

One-third of the bankers believe the prices would drop more than three percent.

Some 11 percent of South Korean households are multiple real estate holders, while 35 percent do not own any, according to a survey of 3,000 residents in the capital.