S. Korea`s property market to slow this year

SEOUL, Jan. 18 (Yonhap) -- South Korea's property market is forecast to continue
to slow this year due to the central bank's interest rate hike and decreased
orders from the public sector, while housing prices are expected to rise
moderately, a poll showed Tuesday.
According to the survey of 100 market watchers conducted by the Korea Chamber of
Commerce and Industry, 52 percent of the respondents said that higher interest
rates and decreased bank loans to builders will depress the local construction
industry.
Thirty-three percent said decreased orders from the public sector will also make
the property market sluggish this year.
The Bank of Korea, South Korea's central bank, raised its key interest rate on
Thursday by a quarter percentage point to 2.75 percent.
However, about 80 percent of the respondents said housing prices in South Korea
will go up gradually this year due to a shortage of housing and increased
purchases of houses stemming from soaring housing rental costs.
The Construction Association of Korea (CAK) said earlier that a prolonged slump
in the local property market had sent the local builders' domestic orders falling
during the January-November period of last year from a year earlier due to a fall
in orders from the public sector.
Local orders of the builders fell 12.5 percent on-year to 87.24 trillion won in
the period, the CAK said.
South Korea's housing market has been in the doldrums since the onset of the 2008
financial crisis.
ksnam@yna.co.kr