Housing prices in the metropolitan area are expected to continue rising due to a supply shortage.
The Hyundai Research Institute noted in a report titled "Need to achieve balance in the real estate market through rapid supply expansion - inspection of metropolitan real estate economy and implications" on the 23rd that "while housing sale prices may temporarily adjust, they are expected to rise in the future due to a shortage of dwelling supply and the easing of household loan regulations."
According to the report, the volume of completions is expected to decrease starting this year due to a decline in housing construction starts that began in 2022. Additionally, the anticipated volume of joint housing in the metropolitan and local areas next year is projected to shrink by 38.7% and 44.6% respectively compared to this year.
The institute argued that the effects of demand suppression policies such as the household loan regulations implemented on June 27 are short-lived in a situation of supply shortages. It cited cases where the prohibition of mortgage loans for apartments exceeding 1.5 billion won from 2020 to 2022 actually led to an increase in housing sale prices.
The institute stated, "The future real estate market is likely to be influenced by supply and policy" and emphasized that "efforts should be made to balance housing demand and supply through consistent and reliable real estate policies."
It continued, "Given the high possibility of a future shortage of dwelling supply, the government must stabilize the real estate market through effective housing supply measures" and added, "Since regulations in the housing sale market may lead to a balloon effect in the rental market, monitoring of the rental market must also be strengthened."