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As the housing market entered a sluggish phase, it was predicted that the sale and rental prices of apartments in the metropolitan area would fall by 3-4% next year.
Kwon Joo-an, a researcher at the Korea Institute of Construction Policy Studies, said at a seminar on construction and housing economic forecasts for next year held on the 29th, “In the housing market next year, the risk of a hard landing is rising due to deteriorating new supply conditions amid continued decline in housing demand, and downward pressure on housing prices. It will grow," he said.
Researcher Kwon predicted, "The housing market has entered a slump, and housing prices are expected to bottom out around 2024."
Despite the government's active efforts to improve regulations this year, it is analyzed that the housing market stagnation will continue for the time being as demand sharply contracted in the aftermath of high interest rates, high prices, and economic recession.
However, Kwon predicted that the rate of decline in apartment prices in the metropolitan area would fall by 3-4%, which is somewhat slower than 4-5% this year.
Construction investment next year is expected to decrease by 3% compared to this year as construction starts decrease due to increased construction costs and financing burden despite an increase in building permits this year.
(Photo = Yonhap News)