ASIA: House transaction prices fell 1.8 percent nationwide last year, the first drop in ten years. According to a KB Financial Group report released on Sunday, Daegu experienced the greatest decline at 5.2 percent, followed by Daejeon at 4.4 percent and the greater Seoul area at 2.7 percent.
In the report released Sunday, more than 90% of real estate experts predicted a drop in housing prices this year, while 1 in 2 predicted a rebound next year.
Last year, the number of transactions fell by nearly half. The monthly transaction volume averaged 33,000 houses in the second half, compared to 82,000 houses in the 2017-2021 period.
According to the KB survey of property experts, private bankers, and 500 real estate agencies, 92 percent of private bankers, 95 percent of property experts, and 96 percent of real estate agents predicted a drop in the housing market this year.
In the greater Seoul area, 35% of real estate agents and 26% of academics predicted a more than 5% drop in housing prices. KB predicted a 4.1 percent decline. Almost half of the experts polled predicted a rebound in housing prices in 2024.
They cited eased mortgage loan rules, lower taxes, and other financial assistance as key policies that could help improve market sentiment.
According to the report, the current period of price adjustments will continue for some time, but drastic drops in housing prices are unlikely.