House prices in Gangnam district of Seoul fell 10%. Why did Korean house prices fall?

South Korean house prices have fallen sharply in recent years. According to the data released by the Korean government, since 20 19, the house price in Korea has been falling for two consecutive years, and the transaction volume in the real estate market is also decreasing.

The price of an apartment in Jiangnan District was as high as 3.2 billion won, but now it only sells 2.35 billion won, down 850 million won (RMB 4.52 million). This topic has been hotly searched.

I looked up some information on the Internet and saw that South Korea committed suicide and ran away because of falling house prices and no hope of repaying loans. These events began to appear in news reports. We also found out the factors that led to the sharp drop in housing prices in South Korea, mainly the interest rate increase in the United States and the slowdown and recession of global economic development. In addition, it is also related to Korea's own financial and real estate policies. Among them, South Korea's full rental policy is another important reason for the sharp drop in housing prices in South Korea.

The influence of policy regulation is one of the main reasons for the change of house prices. I see from relevant reports that the Korean government has recently implemented a series of regulatory measures, including raising property tax, restricting loans and increasing property tax. These measures are obviously aimed at the housing problem, which eventually leads to a decline in housing prices.

Since 2020, the outbreak of the epidemic has caused the economy to shrink and many people have lost their jobs. This is recognized, because the whole world has been affected, including China. Therefore, everyone has no work to do, just think about it, how can there be extra money to buy a house! As a result, the demand of buyers has decreased, and the investment confidence of developers has also been hit.

Imbalance between supply and demand I checked the relevant information and learned that in the past, the urbanization process and population growth in South Korea led to an increasing demand for housing, but the supply could never meet the market demand, which eventually led to an increase in housing prices. However, in the case of imbalance between supply and demand, rising house prices gradually saturated the market and eventually led to a decline in house prices.

As for the simple problem of falling house prices, as ordinary people, they care about their own interests. I would like to make some suggestions for your reference only:

We should increase rationality.

It is important to say it three times, and don't blindly follow suit. House prices have fallen, and many people will give up buying a house because they are worried that house prices will fall further. In this case, they should calm down, comprehensively evaluate their needs and abilities, and do it according to the actual situation.

Understand the price trend

Before buying a house, you should walk more and see more. Carefully examine the local real estate price, historical price changes, housing quality, surrounding environment and other aspects to avoid encountering low cost-effective or defective houses.

Some time ago, my friend bought a suite, and when he saw the price was very cheap, he liked it. At that time, he paid the full deposit. As a result, after buying it, people in the community said that there used to be a couple living in this house, and later the woman died unexpectedly. Making friends is in a dilemma ~

Adjust the purchase plan

If it is in the stage of high market risk, you can slightly extend the waiting period, or wait for a better opportunity to buy a house under the current market situation. In short, we must understand that buying a house is not a trivial matter, even if it is cheap, it is also a sum of money.

Financial aspects should be well planned.

Before buying a real estate, everyone needs to make a good financial plan to ensure that they have enough funds to pay the down payment and loan, and at the same time plan their living expenses to avoid being unable to maintain a normal life due to loan pressure, and make a good financial plan.

In short, the South Korean housing crisis has also sounded the alarm for us in China. We must realize the importance of stabilizing housing prices and avoid real estate speculation, which is the key to promote the virtuous circle and healthy development of real estate. Don't let buying a house squeeze the consumption power of ordinary people, don't let the excessive rise in housing prices hurt the consumption confidence and enthusiasm of ordinary people, and let the housing truly return to the residential property, and the real estate environment will get better and better.