KB Financial Releases '2025 KB Real Estate Report' Forecasting This Year's Market
Diverging Outlooks: Decline Expected in Non-Capital Regions, Mixed Forecasts for Capital Area
On the 16th, KB Financial Group published the '2025 KB Real Estate Report,' which includes an analysis of last year's real estate market and forecasts for this year's market.
Through the '2025 KB Real Estate Report,' KB Financial predicted that the housing market, which experienced fluctuations of rises and falls last year, will generally show a downward stabilization trend this year. In this process, regional differentiation based on preferences is expected to deepen further, and government policy directions such as loan regulations and the concretization of supply policies are anticipated to be key variables influencing the housing market trends.
The seven major issues for this year's housing market were identified as: ① supply volume, which is pointed out as the core factor of housing market instability; ② the possibility of a rebound in the depressed non-capital region housing market; ③ interest rate cuts and loan regulations, which are key variables for the 2025 housing market; ④ the potential normalization of the non-apartment market, the main housing means for low-income households; ⑤ the aging planned city redevelopment projects, which are getting on track amid concerns and expectations; ⑥ the Seoul apartment market, a barometer for housing market conditions; and ⑦ instability factors in the jeonse market, which continues to rise. Detailed analyses and forecasts for each issue are included in the report.
The '2025 KB Real Estate Report' reflects vivid opinions from the field by analyzing survey results from over 700 real estate experts, licensed real estate agents, and PBs. According to the survey, the majority forecast a decline in nationwide housing sale prices this year, but regional results varied somewhat. Both experts and real estate agencies predicted a decline in non-capital regions, while in the capital region, experts expected a rise, and agencies forecasted a decline, showing some divergence. This is interpreted as reflecting the current atmosphere of stagnation due to decreased recent transaction volumes.
Additionally, in the 'Housing Market from the Field's Perspective' section, the capital region is divided into five areas: south of the Han River in Seoul, north of the Han River in Seoul, major school districts in Seoul, major redevelopment areas in the capital region, and areas with transportation issues. Market trends and issues for 15 detailed sub-regions were analyzed. The report also includes diagnostics and forecasts for the commercial real estate market, covering asset types such as offices, logistics centers, shopping malls, knowledge industry centers, and officetels.
Dr. Kang Min-seok of the KB Management Research Institute explained, "This year, the market situation will continue to be mixed with factors driving both housing price increases and decreases. Above all, government policies on household debt management and housing supply will be major variables determining market trends."
Meanwhile, KB Financial has been leading the real estate market by producing various statistical indicators and real estate market reports based on weekly and monthly housing price trend surveys published by KB Kookmin Bank since 1986. To provide customers with accurate and useful real estate information, KB Financial has been publishing the 'KB Real Estate Report' annually since 2018.
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