Korean Job Discussion Forums

[Todstar]

It seems to me the more I learn about the property market here the more it appears to be one huge speculative pyramid scheme, this is the latest story I was shocked by

http://english.hani.co.kr/arti/english_edition/e_business/438644.html

Now Ive never understood the rental system here from a landlords perspective as it just seems a lose/lose situation for them unless they are relying purely on huge capital growth - ie a big gamble.
If banks are pushing out repayment dates into the never never in order to stave off having to repossess and this is being ignored by the regulators then red warning lights should surely be flashing?

[Unposter]

There is no question that a precipitious drop in housing prices would be disasterous to the Korean economy, as it would anywhere.

So, it should not be surprising that the Korean government recently changed a number of rules and provided some incentives to buy a house between now and next year March.

Except for a few high demand areas for housing, such as the Gangnam area of Seoul, I would be very, very careful about buying real estate in Korea.

On the other hand, I would expect the Korean government and banks to do anything they can to keep mortgages solvent and real estate prices stable but I think it will be a tough ride.

On another positive note, I think it was the World Bank or the IMF or one of those agencies projected per capita GNP to rise to around $28,000 by 2015. It is $20,000 now. So, if the Korean economy continues to grow, housing prices may stabalize, but like in all things there are no guarantees.

[GoldMember]

How property works in Korea. A schmuck buys an overpriced, poorly built concrete box, who in turn then sells it at a higher price to a bigger schmuck, who later sells it at a higher price to an even bigger schmuck. Works fine as long as you can keep finding bigger schmucks. Run out of schmucks and then you have a big problem.

[red_devil]

The housing market is just as stupid as it is in the states. The prices have been so inflated and left to run rampant, it's not wonder it's about to crash. Still, no difference in the housing prices in Gangnam...rather they've gone up. The Korean version of Orange County i guess.

[frankriccard]

interesting stuff

[Who's Your Daddy?]

Any information in the "national" newspapers is about Gangnam, and seems unrelated to my area.

[Captain Corea]

Keep in mind the source. That Hanky is as far left as they come. I haven't read through the article, but it's always something to be wary of. They sensationalize anything that they feel is 'keeping the little man down'. (likewise, the Chosun will do the exact opposite).