Monday, May 25, 2015
House Prices in Korea
“Measures to try to revive a housing market that has been in a multi-year slump including legislation to unwind major regulatory roadblocks for housing reconstruction projects which had been previously introduced to curb house price inflation and speculative demand. In the wake of these measures, together with some unwinding of the earlier tightening of mortgage lending restrictions (…), there have been some preliminary signs of a pickup in house prices and transactions volumes,” says the latest IMF report on Korea.
On housing finance, the report says that “at the same time the structure of household debt could be strengthened. Reflecting Korea’s relatively young and rapidly growing mortgage market (…), a large share of houses are financed short-term either in the form of chonsei rental deposits or the rolling over of floating-rate interest-only mortgage loans with short maturities and bullet repayments. One key challenge will be to facilitate the transition by households and financial institutions toward a more stable, long-term structure (…).”
Posted by at 4:33 AM
Labels: Global Housing Watch
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