Korean housing market to slump further: poll

By Nam Kwang-sik
SEOUL, Nov. 12 (Yonhap) -- South Korea's housing market is forecast to suffer
further contraction due to a severe economic slump, a poll showed Wednesday.
In a mid-October survey of 60 real estate experts made by the Korea Chamber of
Commerce & Industry, 90 percent of property experts polled said the local housing
market may suffer a slowdown because of unfavorable economic conditions.
Of the respondents, 67 percent expect the housing market to get better after
2010, while 33 percent predict the market may recover from the current slump in
the second half of next year.
Eighty-four percent of experts polled said local construction companies'
financial woes, which have stemmed mainly from a rising inventory of unsold
homes, may lead to a slowdown in the real economy next year.
A majority of the experts said recent government steps to boost the housing
market will have little impact.
The government has made attempts to revive the housing market seven times so far
this year. Among the measures is a controversial revision to property tax law.
The average price of housing could fall 5 percent on average and drop as much as
10 percent next year if the country's economy fails to recover, according to the
Construction & Economy Research Institute of Korea.
A lingering credit crunch affecting banks and companies may also impact the
market, the institute said.
ksnam@yna.co.kr
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