What's the impact of falling Korean housing prices on China's housing prices?

Recently, house prices in Seoul have plummeted by 30%, and in some areas, house prices have fallen to 40%, transaction volume has plummeted by 70%, and banks have stopped supplying millions of people. A large number of landlords fled urgently because they could not pay back the money. The remaining tenants have no choice but to commit suicide.

What is the reason for the sharp drop in housing prices in South Korea?

This has to talk about Korea, a wonderful real estate market.

Seoul is the city with the fiercest real estate speculation in the world, and the degree of real estate speculation far exceeds that of Wenzhou. The most expensive area in Korea is Gangnam-gu, Seoul, where the current average house price is equivalent to RMB/kloc-0.5 million yuan per square meter. At the craziest time, Gangnam-gu in Seoul soared by 30% overnight.

Then why are Koreans keen on real estate speculation? Because in recent years, the full rent model has become popular in South Korea. Simply put, this is a model that only pays the deposit without paying the rent, which is almost rent-free. It is widely loved by young people in Korea. However, this deposit is a bit large, that is, 50%-80% of the house price. Young people don't have that much money to pay the deposit. At this time, I made a deposit loan to help the homeowner collect the down payment and pay the down payment. Real estate speculation with the balance of the loan is basically full loan real estate speculation, so the house price in South Korea has gone up very crazy, which can be said to be rich overnight.

Let's talk about the reasons for this plunge.

Since March 16, 2022, the Federal Reserve began to raise interest rates, and the national capital market began to shrink. At this time, funds began to withdraw from the Korean market, and then South Korea began to raise interest rates, which led to a rapid increase in borrowing costs. The bank interest paid by the tenant has exceeded the normal rent, so a large-scale refusal to renew the lease began. Everyone stopped renting and asked for a refund of the deposit. The landlord began to worry and began to sell the house. This is the advantage of the current property market crash and low-cost trampling. Since the beginning of this year, South Korea's housing prices have been falling endlessly, with the highest drop reaching 70%. So far, there is no sign of stopping the decline, which has caused great losses to the Korean economy.

Have a professional evaluation. The collapse of South Korea's real estate may set South Korea's economy back for 20 years, which is far more harmful than the collapse of Japan's property market that year.

Will the falling house prices in Korea have an impact on our real estate market?

We haven't reached the second highest house price in the world.

China has not implemented the policy of renting all houses to promote the prosperity of the real estate market.

Even under the increasing economic pressure, China has not relaxed its real estate policy to promote the development of market economy.

Therefore, we can see that China's real estate market is slowly bursting, not like South Korea's.

South Korea's real estate crisis has occurred, how to take a warning?

The real estate market in China is similar to that in South Korea a few years ago. Due to the timely policy control in China, the house price did not fluctuate greatly, because the house price rose too fast or fell too fast, which would cause incalculable losses to the national economy. China's aging is accelerating, the birth rate is lower, and the supply of houses exceeds demand. At present, house prices are still in a downward trend. As long as we insist on not speculating rent, increase the construction of public rental housing and low-rent housing, and provide affordable housing for young people, we can accelerate economic development and raise everyone's income level. China real estate will surely land smoothly.