SEOUL : Young South Koreans are buying homes in defiance of sharp rate rises that has once again put the spotlight on a severe housing shortage, complicating President Yoon Suk-yeol's plans to ease a property affordability crisis in Asia's fourth-biggest economy.
Such purchases, which an increasing number of young Koreans are pursuing, are being made despite rapid interest rate hikes by the Bank of Korea and suggest the public remain sceptical of Yoon's vow to ease an affordability crisis that has eluded successive administrations. “The continued snapping up of homes by young people is coming at a time when interest rates are rising fast, so consumption could be hit as many will be forced to cut back on their living expenses," said Park Sung-woo, an economist at DB Financial Investment.
Yoon has pledged to relax loan curbs and supplying 2.5 million apartments to ease an acute shortage of property, including loosening loan-to-value restrictions from July. Oh considers herself lucky to have secured a mortgage with a state-run lender that offers cheap, fixed-rate loans to first home buyers.
In fact, a May BOK survey showed South Koreans remained largely optimistic about property prices for the next 12 months.