PERCEPTION OF REAL ESTATE IN KOREA Ryan Hong E Sociology May 18, 2012.
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Transcript of PERCEPTION OF REAL ESTATE IN KOREA Ryan Hong E Sociology May 18, 2012.
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