Go to content


Issue Report

Collection of full-length papers and in-depth analysis of economic and management issues.

Paradigm Shift in the Korean Real Estate Market after the Currency Crisis and Suggestions for Governmental Policy

Paradigm Shift in the Korean Real Estate Market after the Currency Crisis and Suggestions for Governmental Policy

KIM Kab-Sung

Mar. 1, 1999

Download Paradigm Shift in the Korean Real Estate Market after the Currency Crisis and Suggestions for Governmental Policy PDF email Print

Abstract

The economic crisis, which began in late 1997, triggered tremendous changes in the Korean real estate market. Before the crisis, real estate prices had never plunged, except for a slight decline during the period from 1992 to 1994, reflecting the effects of the government’s anti-speculation policy backed by the 'public ownership concept of land'in 1990. Due to the traditionally high increase rates of land prices, which, for example, increased, on average, 28.2% annually in the 1970s, Korean people thought that real estate prices would never stop rising. Though real estate prices began to stabilize in the 1990s and the increase rate of land nationwide recorded only 0.5% annually after 1995, real estate prices in the Seoul metropolitan area have still risen extremely high. For example, according to research conducted by Budongsan Land, a magazine specializing in real estate information, prices of apartments rose 31.3% in Sanbon, one of the newly built towns in the Seoul metropolitan area, in 1997, while these prices rose 14.2% nationwide.

For full text (47 pages), click the PDF icon on top.
Go to list