Geonsanyeon "House Price Increase Rate 5.5% This Year... Higher Than Last Year"

This year, the nationwide housing price increase rate is expected to reach 5.5%, surpassing last year's rate of 5.4%, and the rise in jeonse prices is also projected to be greater than last year.

The Korea Construction Industry Research Institute (KCI) announced on the afternoon of the 30th at the '2021 Second Half Construction and Housing Market Outlook Seminar' held at the Construction Hall in Nonhyeon-dong, Gangnam-gu, Seoul, that nationwide housing sale prices will rise by 1.5% in the second half of the year.

KCI predicted, "Housing prices in the metropolitan area will increase by 1.6%, while those in provincial areas will rise by 1.3%."

On an annual basis, the nationwide increase rate is expected to reach 5.5% this year, surpassing last year's rate of 5.4%.

The metropolitan area is expected to rise by 6.5%, the same as last year, while provincial areas are projected to increase by 4.4%, slightly higher than last year's 4.3%.

KCI diagnosed, "Despite the government's strong demand suppression measures and supply signals, expectations for housing price increases remain, and concerns about housing supply have not dissipated, so demand dominance continues."

Kim Seong-hwan, a senior researcher at KCI, said, "It is clear that housing prices are at a peak as unprecedented liquidity has concentrated in assets over several years," but added, "From the seller's perspective, incentives to put properties on the market have decreased, and considering the proportion of multi-homeowners and trends in gift transactions, the supply of properties is expected to remain lower than demand."

Due to the effect of jeonse listings being locked up following the implementation of the Three Lease Laws, nationwide jeonse prices are predicted to rise by 2.3% in the second half of the year.

On an annual basis, KCI forecasts that the jeonse price increase rate will be 5.0% this year, higher than last year's 4.6%.

This content was produced with the assistance of AI translation services.