In the third quarter, the rise in housing prices in korea led to 56 countries worldwide。
According to the global residential price index, published by britain's real estate consulting firm knight frank on 19 december, residential property prices in korea increased by 23. 9 per cent from july to september, the largest increase in 56 countries in the global housing price index。
In an analysis of the financial web site, the republic of korea was the third most expensive home purchaser after the european countries of luxembourg and switzerland. The relatively low wages, high housing prices and high cost of living make it difficult for koreans to own their first home。
Despite a series of “package fists” — heavy taxes, increased supply schemes and stricter lending provisions — the prices of houses have risen. According to data from the korea real estate commission, the average increase in housing prices between january and october of this year was 8. 9 per cent, which is higher than the 5. 36 per cent increase for the entire year last year。
It is still leading to an increase in house prices. The potential buyers of downtown seoul are not able to afford to go to the suburbs. According to government data, in january-november, housing prices in the seoul metropolitan circle — seoul, kyouta and incheon — continued to rise above the national average, at 12. 5 per cent, well above the 6. 5 per cent growth rate in the region over the past year。
In the gangnam district of seoul, the price of part of the dwelling has risen by about 2 million yuan a month, according to financial reports. For example, an apartment of 131 square metres has now been sold at a price of over 4 billion won, approximately 23 million yuan, or 2 million yuan more than last month。
At the same time, prices have risen, further weakening the purchasing power of the population. According to the november consumer price movement published by the office of statistics on 2 december, consumer prices rose by 3. 7 per cent in november, the largest increase in nearly 10 years. Also, preliminary statistics disclosed by the bank of korea show that real gross national income (gni) in the third quarter, reflecting real national income, was 0. 7 per cent lower than in the previous quarter, with a return in five quarters。
Against this background, an increasing number of young people who are unable to find work are looking at “scrambling houses”. According to the korean federation, in august this year, the number of young people seeking employment increased to a record 874,000, 100,000 of whom have been seeking work for more than three years and remain unemployed。
On the one hand, there is brutal competition in the workplace, and on the other hand, there is a burning real estate market, with many young people opting for loans for “scrambling” and hoping to get on the bus. In the first half of this year, credit loans in the 20-30 age group increased to 38. 7 trillion won. Over the past year, nearly 30 per cent of newly established companies in korea were engaged in real estate, the largest share。
Other young people prefer to lie down and turn to luxury goods. Bloomberg reported that, even during the worst period of the epidemic, there had been no looting of essentials. On the contrary, many young people lined up outside the department store in the morning to buy chanel bags。
According to reuters, soaring house prices are one of the reasons why young koreans aged 20 and 30 are eager to buy luxury goods. “they spend a lot of money on luxury goods in the spirit of `living once' `if they can't afford a house anyway.”
On 17 december, the “unsatisfactory mz generation” and “surge house prices” ranked third and fourth, respectively。
The “mz generation” usually refers to young people born between 1980 and the early 2000s. Against the backdrop of soaring housing prices and economic downturns, this generation has become the main political force in korea. In april this year, the seoul and busan by-elections of mayors supported the opposition and won an overwhelming victory because of their frustration at the failure of the ruling party's policies and the sense of betrayal generated by moral double standards。
In a televised broadcast at the end of november, the president put on record that the failure to control the rise in house prices was the greatest regret of his term of office: “i regret the failure of real estate policies, which did not provide sufficient opportunities for the public, particularly young people and newlyweds, to buy houses”. He promised that he would continue to stabilize house prices for the remainder of the term and try to find a solution “without leaving the issue to the next government”
On 10 may 2017, in chi, he was elected the nineteenth president of the republic of korea, whose term will officially end at 12 p. M. On 9 may 2022, in accordance with the rule that the president of the republic of korea shall serve a five-year non-renewable term。
We don't have much time left。
