[Next Year's Real Estate Outlook] Should Have Bought This Year... House Prices Will Rise More Next Year

2022 Real Estate Market Expert Forecast

90% Say "Housing Price Uptrend Will Not Break"

Majority of Respondents Expect "Jeonse and Monthly Rent Prices to Rise Further"

[Asia Economy Reporters Minyoung Kim, Hyemin Kim] Nine out of ten real estate experts forecast that housing prices will continue to rise next year. Regarding jeonse and monthly rent prices, all respondents predicted an increase, indicating that market stabilization will be difficult to expect next year as well.

On the 3rd, Asia Economy conducted a survey of 20 real estate experts asking about next year's housing price outlook. Thirteen respondents (65%) predicted that "housing prices will rise" next year. Although interest rate hikes and the presidential election are variables affecting the real estate market, it is expected that the upward pressure on housing prices will continue as long as the supply shortage persists. ▶Related article page 3

Among the respondents, five (25%) expected housing prices to remain stable next year. However, considering that four of them described this as a strong stability with a rise rate in the 1% range, it can be analyzed that 90% of all respondents predicted housing price increases next year. Only two experts anticipated a decline.

Jinhyung Seo, President of the Korea Real Estate Society (Professor at Gyeongin Women's University), said, "With the supply shortage already a given next year, the demand from actual buyers for homeownership has not been resolved," adding, "Unless extraordinary measures are taken, the upward trend in housing prices will not break."

Stabilization of the jeonse and monthly rent market next year also looks bleak. None of the respondents expected jeonse and monthly rent prices to fall compared to this year. More than half anticipated an increase of over 5%.

The main factors driving up jeonse and monthly rent prices were cited as a decrease in new move-in supply and the Lease Protection Act, which has been in effect since July last year. Since next year marks the second year of the Act's enforcement, landlords are expected to raise prices on the new supply entering the market.

Youngjin Ham, Head of the Zigbang Big Data Lab, said, "Along with landlords passing on their property tax burdens, prices are likely to rise for the supply entering the market in the second year of the Lease Protection Act's enforcement," adding, "Some tenants are also increasing who want to convert raised deposits into monthly rent, so rental market prices will continue to rise next year."