According to news reports, the price of an apartment in Seoul, South Korea has soared100000 RMB in eight months, and the property market is in a state of complete collapse. Although South Korea has continuously introduced relevant property market policies, it still cannot recover the current collapse situation, and the main reasons for this phenomenon are: chaebol manipulation, loose monetary policy and the impact of the epidemic.
First, the chaebol manipulates and holds a lot of land. Friends who are familiar with Korea must be familiar with the word chaebol. South Korea has long been a typical chaebol politics. Any policy orientation ultimately needs to meet the needs of the chaebol. So is the reform of real estate. Since last year, South Korea has continuously introduced various purchase restriction policies, hoping to buffer the property market. The original intention of this policy is naturally positive and healthy, but it allows the chaebol to see the opportunity to make a fortune.
The chaebol used the purchase restriction order to concentrate land and real estate in their own hands. Ordinary citizens want to buy a house and need to buy qualifications from the chaebol. Such a monopoly leads to the house price being completely determined by the chaebol. They can ask for as much as they want, which completely disrupts the normal law of the whole market and makes house prices fall into the abyss of false high.
Second, the monetary policy is loose, and people have invested. In recent years, South Korea's economic development has obviously stagnated. In order to get rid of the predicament, the Korean government has begun to adopt the way of stimulating domestic demand. They introduced a very loose monetary policy, which made it very easy to borrow and spend, which led to more money flowing into the market.
Compared with investment projects such as stocks, Koreans prefer to invest in real estate. After all, whenever you need a house, the cycle of making money is short. As a result, more and more people began to enter the real estate, and when the demand was in short supply, houses began to rise.
Third, the epidemic is frightening and buyers seek comfort. The outbreak of the COVID-19 epidemic has put the global economy in trouble, and South Korea is naturally not immune. Seeing friends around me die or go bankrupt has made many Koreans start to panic. They are worried that they may face the same problem one day.
Moreover, the epidemic situation in South Korea is still not optimistic, so everyone has sold their various properties. Like the gold in troubled times, they think that no matter what difficulties they encounter, the house is omnipotent.
In short, the soaring apartment prices in South Korea are a microcosm of the runaway housing prices in South Korea. If the government can't continue to introduce benign policies, South Korea may have several rounds of crazier housing prices, thus reaching a completely uncontrollable state.