Traditional Culture Encyclopedia - Travel guide - What do you think of the phenomenon of falling house prices 10% in Gangnam District of Seoul?
What do you think of the phenomenon of falling house prices 10% in Gangnam District of Seoul?
First, South Korea's population is aging seriously, and there are too few new generations.
With the improvement of people's knowledge and cultural quality, more and more people want to pursue their own lives, so many people are gifted and well-educated, and even double income no kids is barren. Therefore, South Korea's population is aging seriously, but there are few newborns. Because there is no new life coming, the demand for houses is not great. House prices are bound to be affected.
Second, there are too many houses and the number of people in need is decreasing.
With the skyrocketing housing prices, many people have taken a fancy to real estate. So many real estate companies are developing land to build houses, resulting in a large number of vacant houses. Many people buy houses to wait for appreciation, and the demand for houses is decreasing. When the demand for houses decreases, it is difficult to sell, and the price naturally falls.
Third, the market economy is sluggish.
Due to various reasons, South Korea's market economy is very depressed. Many properties can only be sold at reduced prices in order to recover costs, because all my real estate funds are bank loans. There are also some industries such as real estate that need funds to return. The house can only be reduced in price in order to withdraw funds.
Fourth, housing prices are artificially high.
In fact, housing prices in many places have become very high because of speculation, and the value of the house itself is not that high. When people's demand decreases and investment is rational. Then these inflated house prices will start to fall. Only when the surrounding facilities of these houses are perfect can the house have its real price. Gangnam-gu, Seoul, South Korea has always been a rich area, and most people can't afford to buy houses there. The needs of the rich are saturated, and they need to save money for their careers. Naturally, these inflated housing prices will come down.
Be cautious when buying a house. Buying a house is a very big thing for most people, so you should keep your eyes open when choosing a house, not only the location of the house, but also the quality of the house and whether the surrounding facilities are complete. Don't blindly follow the trend and speculate on investing in a house. The rise and fall of the house has certain risks.
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