Interesting
summary in the Korea Times of the housing glut of the past years.
The
article fails to note that although population is stagnating (and falling in
certain areas) the number of households is actually increasing rapidly due to
deep social changes eroding the three-generations-under-the-same-roof system:
late marriages, a high divorce rate, seniors fending for themselves... Of
course, the past and current supply of housing may not have yet fully adapted
to these smaller households with presumably tighter budgets and less need for
space.
Another
factor may be the stalling of the economic engine which used to provide an
endless supply of middle class families to buy into the much sought-after
'apateu' (high-rise apartment complex). Even with continuing national economic
growth, the shrinking of the middle class and the widening social divide (so
called polarization) may have thrown a spanner in the works.
Finally
(for this post), the debt ratio of Korean households has never been higher,
overtaking even the notoriously profligate American household, and limiting
their capacity to finance new homes.
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