Presentation Transcript

1. Perception of Real estate in Korea

   Ryan Hong E Sociology May 18, 2012
2. Non-Material Culture in Korea
3. Objectives No Surveys Through age groups Interviewed realtors Scope of buyers Reasons enlisted for the purchase Down payment Family size Data from real estate sales in 5 different areas # of flats sold Average # of bedrooms in the quarter Pyeong Apartment branding Niceness of exterior design was measured by the branding/label of the building
4. Contextual Information 40-100 million KRW – median price Casual Not refurbished Usually funded by corporate businesses 150-200 million KRW – upper echelon Occasionally refurbished Usually funded by corporate businesses
5. Results for Teheranno and Jamsil Attracted buyers in their mid to late 30’s (people with families) Inexpensive accommodation, convenience, proximity to the city Buildings tended not to be branded More concern with location and interior parameters Allocation of interior space, navigation through vicinity Government funded apartments
6. Results for Apgu-Jeong Attracted buyers in their mid to late 20’s 1/3rd of buyers covered initial deposit (75-100 million KRW) Hyundai -> prestige Refurbished Buyers were more eager to utilize interior amenities Disregarded exterior design (nicer buildings similar price range within the same area) Hyundai Apartments
7. Results for Samseung and Dogok Senior citizens (65+) Bought large properties primarily for hospitality + amenities Large properties -> owned by big companies Exterior prestige came as a supplement
8. Conclusion, Potential Errors, Feedback Koreans are conservative Korean culture is a paradox Interior blue print > exterior design 50% down payment Lifting of restriction on property loans Tax exemption -> housing registration extended Conclusions are too generalized Making too many thin assumptions for a small sample Real estate investments should weigh in based on terms of the project