S. Korea`s housing prices to rise 3.5 pct next year: poll

SEOUL, Dec. 16 (Yonhap) -- South Korea's housing prices are expected to rise an
average of 3.5 percent next year from a year ago due to the economic recovery and
a fall in the housing supply in the private sector, market watchers said
Wednesday.
According to a survey of 100 real estate experts conducted by the Korea Chamber
of Commerce and Industry, about 86 percent predicted that housing prices will go
up next year.
"A recovery in the economy and a contraction in the housing supply is likely to
continue next year, which will lead to a rise in housing prices. The local
elections slated for June will be an important factor for the local housing
market," the chamber said.
Of the experts surveyed, 34.8 percent ranked an economic recovery as the biggest
factor that will impact housing prices, while 20 percent said the pace and level
of an interest rate hike will be the second-biggest factor for the housing
market.
"If the country's key interest rate is hiked next year, it may weaken the
purchasing power of home buyers," the chamber said.
jia@yna.co.kr
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