Why is there no bubble in Korean real estate?

In recent years, the real estate industry has become the most important force supporting China's economic growth. Land transfer has made some local governments "get rich overnight", and people's fixed assets, mainly real estate, are also expanding rapidly. What people see or hear is "land scarcity" and "real estate appreciation", and they lack understanding and vigilance against the bubble economy. With the aggravation of the international financial crisis, China's export industry is depressed, and its excessive dependence on real estate inevitably leads to the grounding of China's economy. However, the economic crisis sweeping the world has not had much impact on the real estate market of our neighboring country, South Korea. Their real estate economy can develop healthily for deep-seated reasons:

First of all, Korea is an export-oriented economy. In order to promote exports, the government will continue to issue more money to lower the exchange rate of the won. With the gradual return of the exchange rate against the US dollar, South Korea's economy will maintain steady growth, and house prices will not fluctuate greatly, but will rise slightly. Therefore, after the financial crisis, no one in South Korea was eager to sell their property, and the whole society was in a stable normal state.

Secondly, South Korea is a country ruled by law and an honest society. People generally have a strong sense of contract. In South Korea, when conducting real estate transactions, the seller will make all kinds of risks and consequences very clear in advance, and the buyer has a full understanding of his rights, risks and responsibilities. After signing the contract, it becomes a matter of course to abide by it. Developers don't want to hand over the house, and customers can't ask for a return in Korea if the house is reduced in price. Even during the Second World War.

Thirdly, South Korea's real estate development is by no means a profiteering industry. All real estate developers will abide by such an unwritten pricing rule, that is, 20% of the input cost will be used as profit. No matter how long the development cycle of a real estate project is, the sales price is set and announced in advance and will not change because of the speed of sales. Therefore, it is very incomprehensible for Koreans to bargain when buying a house in the south of China.

In addition, Korean real estate agencies are also very self-disciplined, and can only extract the agency commission paid by developers. It is absolutely forbidden for developers to increase their own prices when sales are hot. At present, many Korean properties are sold to the China market, and their management of China agents is also very strict. In fact, this is also a rare promotion opportunity for domestic real estate agencies.

For example, Beijing Manor Real Estate Agency, the largest agent of Korean real estate in China, put forward a brand-new business philosophy of "behave yourself, behave yourself and take the road of sustainable development". I believe that with the deepening of economic exchanges between China and the South, the real estate industry in the South will continue to learn from the beneficial experience of South Korea, so that our real estate industry will continue to develop in a healthy direction, thus achieving the goal of harmony and stability.