Financial Planners 3,300 Say "Interest Rates Will Keep Rising Next Year, House Prices Will Fall Until Year-End"

[Asia Economy Reporter Song Seung-seop] A survey by Korea FPSB revealed that the base interest rate is expected to continue rising next year and surpass the 4% level. The outlook was predominantly that housing prices will decline until the end of next year.

On the 16th, Korea FPSB surveyed 3,307 financial planners, with 70.9% responding that the base interest rate trend is expected to "continue rising for the time being." Those who believed it would "remain at the current level for the time being" accounted for 21.7%, while only 7.4% expected it to decline starting next year. The current base interest rate of 3.25% is widely expected to rise to a peak of 4.23% in 2023 before entering a downward phase.

As interest rates rise, 55.6% believed that housing prices will continue to fall until the end of next year, exceeding the majority. However, 34% also expressed the opinion that prices will recover in the second half of next year. Regarding the timing for non-homeowners to purchase a primary residence, the second half of next year was the most common choice at 32.4%, followed by after 2025 at 15%.

For financial products to invest in next year, 64.7% of financial planners recommended interest rate-type products, emphasizing liquidity in the short term. In the long term, 61.3% responded that stock-type products should be used as an opportunity for bargain buying in preparation for economic growth. Additionally, next year, financial assets were recommended over real assets such as real estate or gold.

The key points of household financial planning for next year were "loan repayment" at 40.2% and "securing liquidity" at 34.4%. "Managing household budget surpluses" accounted for 14.9%.