Fianacial crisis inKorea has resulted in high interest rate and credit crunch. It has also brought about increased unemployment and decline in income. Agents in housing sector are sufferign from severe shock arisen from the financial crisis.
Consumers have experienced income reduction and unemployemnt. Home builders encountered difficulties in financing residential construction as a result of cancellation of sales contracts and large numebr of unsold housing stock. Transactions in the housing market have rarely taken place and the situation exacerbated as the home prices fell substantially. And the housing finance institutions are suffering from increasing defaults and difficulties in resource mobilization. Governement tries to solve these difficulties with various short-term reactions such as deregulations and loan supply via National Housing Fund.
We can expect rapid structural changes in housing secotr. However, these changes have gradually started since early days of 1990s. Upon downturning of the house price in 1991, we can say that the housing sector was on the way of restructuring.
The purpose of the study is to identify the structural changes in various aspects in housing sector, to evaluate housing policies based upon these changes, and to establish a new framework of housing policytoward new paradigm. Present status of housing market was identified through census data(1990 and 1995) and household survey was accomplished in this study. The survey was done in metropolitan area, that offered basic information for demand analysis, cmparing with ones for the previous 10 years.
Structural changes were reviewed in demand side, supply side, housing fianace side, and housing related tax side, etc.
Income elasticity of housing demand has increased during the last 10 years, while price elasticity of demand has decreased. Chage in elasticity is larger in demand for rental relative to ownership, and larger in high income class. This means that housing market comes to be comprised of real residential demand rather than the speculative one.
Demand for ownership is projected to increase by 13% in 5 years, and demand for rental is to increase y 17%. However, housing demand in high income class is to increase by 31% while more or less 5% in low income class. Inequality of income distribution will be linked to the disparity of housing consumption level. Thus, the role of government for outlayers of housing market becomes more important.
Uniformed housing demand due to the sales price regulation was much diversified nowadays. 1993 survey showed massive demand for ownership and for the large sized units regardless of their asset status, since large house could give more premium under consistent price ncrease. However, 1998 survey shows various selection of housing demand according to their asset status or tastes.
Housing industry is exposed to serious threats in recent years. Current production structure, business practice may be hopelessly inadequate to meet these challenges that an increasing diversity of housing demand, the opening of domestic market, and a persistent trend of deregulation. However, structure of housing industry does not show much changes. Due to the mass production strategy of the government, housing industry came to keep an excess capacity under decreasing in demand. Financial structure in the housing contractors was aggravated after financial crisis due to high financial cost and high debt ratio. (The rest is omitted)
- 주택시장구조 변화와 신주택정책 방향(Structural changes in the housing market and new directions for the housing policy)
- 윤주현; 손경환; 김혜승; 천현숙
주택시장구조 변화와 신주택정책 방향(Structural changes in the housing market and new directions for the housing policy)
경기도 : 국토개발연구원
|Series Title; No||국토연 / 98-24|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Territorial Development < General|