Real-estate reform wanted, poll finds

Experts predict sentiment will worsen in latter half: KCCI survey


More than half of Seoulites and the people residing in satellite cities said vitalization of the real estate market is necessary, a survey showed on Thursday.

According to a poll by the Korea Chamber of Commerce and Industry, 54 percent of the 500 adults and 88 property experts said a boom in the real estate market is needed.

About 20 percent of the respondents said vitalization is unnecessary while 25 percent of them did not pick either.

A large portion of the respondents among those who picked the necessity expressed worries over an instability in the financial market and economic slowdown from the ongoing sluggish property market.

Meanwhile, 54.6 percent of the 88 realty experts predicted that investor sentiment in the property market will be further undermined during the second half of the year.

The remaining 31.8 percent of the experts forecast that the situation for the latter half would be similar to that of the first half.

The nation’s property market sentiment has dropped despite policymakers’ May 10 measures to ease administrative restrictions and lower taxes on property sales to help reinvigorate the local housing market.

The investor/consumer sentiment toward the local real estate market stood at 109.5 in May, down 1 point from a month earlier, according to a survey of the Korea Research Institute for Human Settlements.

The survey was based on the responses of thousands of households and realtors across the nation.

The reading above 100 means that optimists outnumber pessimists.

The index in Seoul and its surrounding area reached 104.4, almost unchanged from April. Seoul added slightly but Incheon fell by 3.3 points.

The index in regional cities fell 2.3 points to 115.6 due to seasonally-reduced demand for home rentals.

The sentiment for the housing trade and “jeonse (deposit-based long-term rent)” market across the nation came to 111.7 last month, down 1.1 points from the previous month.

The figure for Seoul and Gyeonggi Province fell 0.2 points to 106.4. Seoul posted a 0.8 point rise to 106.7, while Incheon recorded a 3.2 point fall to 102.3. In regional areas, the figure fell from 120.5 to 118.3.

Meanwhile, a group of real estate experts downplayed the possibility of a Japan-like property bubble burst at a forum hosted by the KCCI last month.

By Kim Yon-se (kys@heraldcorp.com)