Apartment Prices On The Downturn

Apartment prices have fallen to the level of last spring. The prices in the southern region of Seoul and Bundang area in Kyunggi province stopped increasing in the middle of last September and have since continued to drop. These regions are the price-leading areas in the national real estate market.
Recently, the average price of a 32 pyung (1 pyung is 35.6 square feet) apartment is 170 million won, which is 5% lower than before. One real estate agent commented, 'Since last week, the number of urgent sales began to rise. There is a large possibility that prices will drop to their lowest level in years.' In Bundang area, an average 32 pyung apartment's price fell to 155 million won last year but recovered to 175 million won last August. The price has since dropped again to the 160 million won level.
Experts in the real estate market say that real estate prices should start to rise in the year 2000 but the rate of increase will be very low. A source at the Daewoo Economy Institute said, 'The price will rise because of the government's policy to boost the economy concentrates on construction including infrastructure. Also foreign investors are starting to buy property and real estate.'