|▲ Korea Real Estate Research / Director Taegwang Lee|
Some real estate officials point out that the Moon administration’s regulations have rather contributed to a rise of price in the capital and a drop in the provinces. The followed up September 13 Measure in 2018 also was not enough to stabilize the real estate market in South Korea.
Korea Real Estate Research
Taegwang Lee, Director of Korea Real Estate Research, has 26 years of experience in real estate market. He opened the research in Gangneung City, August 2013 and has provided free advice for ordinary citizens alongside running a column through which he has given his sights in the market. Alongside the director’s role, he is serving as a real estate professor at Southwestern California University (US) and a real estate finance professor at Open Cyber University (South Korea).
Gangneung expects to see price rise by double
Lee says that the city will see price rise by double within 5 to 6 years. “Last year, the city listed its name in one of the five tourism-driven cities alongside Busan, Andong, Mokpo and Jeonju. What makes Gangneung stands out, however, is that the city’s tourism is optimized for year-round. This is very important because residents are limited so the influx of visitors can activate regional economy and industry and subsequent jobs can be created and thus the increase of population. In addition, the government is proactively engaged in regional tourism vibe.”
Evaluation of property values in the capital region is relatively higher than other regions. It is vulnerable to economic and financial crisis which drops the price by 30 to 40% in such circumstances. In other words, the provinces are less affected even in times of the crisis.
“The most important thing, however, is the trade should be made whether in times of good or bad because evaluation of property often comes nothing without selling and buying. And the current market seems rather gloomy as strengthened regulations on transfer tax, acquisition tax and loans are playing negatively. So the trade seems to be discouraging at the moment.”
Trade in this case means trade made by many but not by a few loaded with capital. Even then the loaded seems to wait for the right timing which makes the situation not promising still, according to Lee.
Rising as the hub of northeast
Gangneung is expected to see the opening of Donghae Line (East Sea Line) that connects the city down to Pohang, Gyeongju, Ulsan and Busan in 2022. It takes only 2 hours from Gangneung to Busan when completed. Also, the city is planning to create a 991,735 square meter big logistics complex near South Gangneung Station by 2024 which will be used as the logistics hub of northeast towards North Korea, Russia and Europe. In addition, Gangho Line that will run between Gangneung and Mokpo is set to open in 2026 and citizens of both cities are expected to enjoy a nice 3 hours and 40 minute journey between northeast and southwest of the peninsula.
Learn Real Estate in 24 Hours
Lee published a real estate auction guidebook ‘Learn Real Estate in 24 Hours’ on February 20 this year. The book is regarded as the first case in the field. Lee gives his insight in real estate auction in the four books categorized in general auction, statutory superficies auction, special property auction and lien auction. Some praise the book as the Bible for real estate auction. For the moment, Lee is set to run a special real estate class from April 15. The class is limited for 40 and Lee will deliver his knowhow on how to deal with the real estate market in this time of the virus depression.
According to Gyeonghee Real Estate in the city, 80% of newly built apartments in Gangneung are completed move-in. A worrying factor, however, is that the trade for lease has dropped significantly on the other hand which might contribute to a rise of overall sales price in the coming years.
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