Real Estate Prices Will Recover, BOK Forecasts

The Bank of Korea(BOK) forecasted in its recently-published monthly report that as the economy recovers, real estate prices will gradually rise.
The BOK reasoned that a combination of factors will lead to an increase in real estate: the economy is recovering more rapidly than expected; home-ownership is still under 70 percent; the government recently deregulated a variety of regulations on real estate transactions and development.
The BOK analysed that the current situation in Korea is not at all like that in Japan: Korea will not encounter a long-term depression of the real estate market like Japan experienced.
In addition, because the Korean government had lifted a ban that prohibited real estate developers and speculators from accessing loans in January 1998, the possibility of a lengthy depressed real estate market lessened sharply, the BOK diagnosed.