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● Housing-Market-Chaos

Real Estate Market Analysis: Recent Changes and the Impact of Land Regulation Policies

[1] 30-Year Real Estate Market Trends and the Rapidly Changing Environment Post-COVID

Having observed the real estate market for 30 years, in the past, housing prices repeatedly trended upward simply through the existing methods of the government or construction companies.
However, after COVID, the dynamics of supply and demand, as well as the flow of investment funds, began to change rapidly.
The common belief that “it always goes up” has been shattered, and significant volatility has become noticeable.
In particular, the Seoul real estate market, coupled with global economic prospects, has seen an increase in cases of rapid short-term price increases due to the influx of both speculative and real demand funds.

[2] Seoul vs. Local Areas: Deepening Polarization and Concentration of Investment Funds

Despite having a high housing supply rate, Seoul is seeing the emergence of new demand groups who purchase for investment purposes or for symbolic value.
As a result, some areas in Seoul are experiencing a rapid increase in prices with limited trading volume and almost no available properties.
On the other hand, local areas are facing accumulating unsold housing and oversupply issues, continuing a phase of price adjustments along with insufficient demand.
Interest is concentrated on the Seoul market, as evidenced by the prominence of SEO keywords related to real estate investment, Seoul real estate, and land regulation release in economic forecasts.

[3] Land Regulation Release and Redesignation: The Impact of Policies on the Market

The release of land development restriction zones (land regulation) was a policy intended to curb speculation,
but there have been cases where prices soared as some investors profited through pre-arranged contracts at the time of the release.
Before the introduction of the policy, one had to anticipate price increases due to development and reconstruction,
but the repetition of release, redesignation, and expanded application within a short period has caused market confusion and unpredictable volatility.
Consequently, Seoul has seen a phenomenon where investment funds continuously flow in, leading to short-term rapid increases followed by price adjustments, disrupting the conventional wisdom of the real estate market.

[4] Mid- to Long-Term Outlook and Future Response Strategies

In the case of Seoul, prices are expected to remain high in areas with distinct characteristics and locations due to speculation and symbolic demand.
On the other hand, local areas are likely to see only short-term supply adjustments without government-led development incentives or industrial restructuring.
Regarding economic prospects, future real estate prices
will largely depend on the concentration of liquidity in the Seoul real estate market, the variable of redesignation after land regulation release, and the flow of newly emerging investment funds.
Therefore, both real estate investors and general consumers must respond sensitively to policy changes and thoroughly manage risks.

Summary

The recent real estate market has seen the collapse of 30 years of conventional wisdom and rapid changes after COVID.
Seoul is in a phase of rapid price increases due to the emergence of investment funds and new demand groups, while local areas are in a period of adjustment due to oversupply and unsold housing issues.
Land regulation release and redesignation policies have triggered short-term price spikes but have brought about market confusion and unpredictable volatility in the mid- to long-term.
The analysis focuses on the direction of the market and response strategies, centered around key keywords related to Seoul real estate, the real estate market, land regulation release, investment funds, and economic prospects.

[Related Articles…]
Land Regulation Policies and Market Changes
Investment Appeal of Seoul Real Estate

*YouTube Source: [경제 읽어주는 남자(김광석TV)]

– 부동산 ‘혼란의 시기’ 시작된다. 30년 전문가가 본 부동산 자금의 흐름 | 경읽남과 토론합시다 | 김효선 위원 2편