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PERCEPTION OF REAL ESTATE IN KOREA

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

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PERCEPTION OF REAL ESTATE IN KOREA

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  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

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