November 02, 2023 12:41
Residential property prices are expected to fall next year due to high interest rates, while jeonse or Korean-style deposit leases will rise as potential buyers take a breather and look for other options.
The Construction and Economy Research Institute of Korea in a report issued on Wednesday said, "It will become more difficult to obtain loans next year, while concerns of protracted high interest rates will cause home prices to fall further" next year.
But jeonse prices, which plunged 4.8 percent this year, are projected to rise two percent.
Kim Sung-hwan at CERIK said, "Amid a short supply of newly built homes, demand for jeonse will increase, leading to rising jeonse prices." But it did not forecast a huge increase.
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