Trend Pulse

It's hard to explain the recent slowdown in Seoul home prices by a simple lack of supply. If supply were an issue, rents should have risen along with it, but instead, sales prices have been rising faster, widening the gap between them. The rise in apartment prices, especially in Gangnam, has been driven more by demand from asset parkers who are worried about losing cash value than from actual residents. This is a result of money flowing into assets that are considered the safest amid the perception that holding cash is a loss. Going forward, we are likely to see a gap-filling market, with the uptick in upper-end locations spreading to mid- and lower-end locations. However, interest rates and global asset market flows remain important variables. #seoulhouseprice #gangnamapartments #assetparking #realestateforecast #gapfilling #nodogang