[2020 Gold Age] "Separating COVID-19 and the Real Estate Market... Rebound in the Second Half"

Park Hapsu, Senior Real Estate Specialist of KB Kookmin Bank WM Star Advisory Group, is giving a presentation on the topic "Real Estate Market Outlook After COVID-19" at the 2020 Gold Age Forum held at the Bankers Hall in Jung-gu, Seoul on the 9th. Photo by Moon Honam munonam@

[Asia Economy Reporter Kangwook Cho] The real estate market, which had been subdued due to the novel coronavirus infection (COVID-19) crisis, is expected to rebound in the second half of the year. This means that factors such as low interest rates, liquidity, and supply-demand imbalances in the housing market will have a greater impact on the real estate market than the COVID-19 crisis itself.

Park Hapsu, Senior Real Estate Specialist at KB Kookmin Bank, made this assessment during a keynote speech titled "2020 Second Half Real Estate Market Outlook" at the "2020 Gold Age Forum" hosted by Asia Economy on the 9th at the Bankers Hall in Jung-gu, Seoul.

Park pointed out, "Although the impact of COVID-19 may continue into the second half, the real estate economy has started to move again despite the economic downturn caused by the COVID-19 crisis."

Looking at the nationwide real estate transaction price trends in June, Seoul rose by 0.53%, the metropolitan area by 0.64%, five major metropolitan cities by 0.37%, and other provinces by 0.21% compared to the previous month, showing a nationwide increase of 0.48%. In particular, Seoul, Incheon, and Gyeonggi Province saw an expansion in the rate of increase, while other provinces showed an upward trend with Sejong and Chungbuk expanding their rise, and Gyeongnam also showing a rebound. The jeonse (long-term lease) prices followed a similar pattern. Except for Jeonbuk and Jeju, all other provinces turned to an upward trend, with nationwide jeonse prices rising by 0.27% compared to the previous month in June.

Park said, "While housing supply is insufficient, liquidity supply is increasing amid a low interest rate environment," and forecasted, "In the second half, COVID-19 and the real estate market will separate, leading to a rebound." He expected both the general sales market and the jeonse market to enter an overall upward trend. Additionally, he anticipated differentiation among reconstruction markets by complex, and redevelopment markets to highlight relative scarcity due to many areas being deregulated.

Accordingly, he suggested that from the perspective of actual demanders, appropriate strategies such as purchasing, switching homes, and subscription plans should be effectively utilized.

Park emphasized, "Actual demanders with purchasing intentions need to monitor market trends and pay attention to urgent sales and other listings," adding, "Especially in the jeonse market, concerns about price increases persist due to changes in the monthly rent environment, so owning one home is the best investment to preserve asset value."