PERCEPTION OF REAL ESTATE IN KOREA

Ryan Hong E Sociology May 18, 2012

Non-Material Culture in Korea

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

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

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

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

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

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