3 reasons why Seoul housing prices are rising, and the shortage theory is wrong
Why Seoul's rising housing prices go beyond supply and demand theories Why the supply shortage theory is wrong Despite the government's strong real estate regulations such as the Land Transaction Permit Zone and speculative hotspot designation, the market hasn't cooled down. While transaction volumes have dropped, the shortage theory is not enough to explain why Seoul prices are rising. If supply shortages are the cause of rising prices, then rental prices should be rising as well, as rentals reflect the demand for actual residents. However, over the past two to three years, rental prices have been rising at a much steeper rate than sales prices. The gap between rental prices and sales prices has widened, a phenomenon that...
