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Structural Changes, Housing Price Dynamics and Housing Affordability in Korea

Structural Changes, Housing Price Dynamics and Housing Affordability in Korea The Korean housing sector offers an interesting case study. It has had a highly regulated market faced with a large demand pressure over an extended period of economic development, has solved the problem of absolute housing shortages within a reasonably short time period, and has maintained an explicit policy goal of achieving housing price stability. This paper documents the evolution of housing policy in Korea, identifying the structural changes that have taken place in the housing market and government intervention in it since the late 1980s. It also traces the trends in housing prices and affordability during the past two decades. An econometric analysis is then conducted to explore the determinants of long-run housing prices and how the structural change in mortgage lending around 2000 has impacted the housing price dynamics in Seoul and several other major cities. Finally, a set of policy implications is drawn from the analysis of housing prices and policy experiences. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Housing Studies Taylor & Francis

Structural Changes, Housing Price Dynamics and Housing Affordability in Korea

Housing Studies , Volume 25 (6): 18 – Nov 1, 2010
18 pages

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References (20)

Publisher
Taylor & Francis
Copyright
Copyright Taylor & Francis Group, LLC
ISSN
1466-1810
eISSN
0267-3037
DOI
10.1080/02673037.2010.511163
Publisher site
See Article on Publisher Site

Abstract

The Korean housing sector offers an interesting case study. It has had a highly regulated market faced with a large demand pressure over an extended period of economic development, has solved the problem of absolute housing shortages within a reasonably short time period, and has maintained an explicit policy goal of achieving housing price stability. This paper documents the evolution of housing policy in Korea, identifying the structural changes that have taken place in the housing market and government intervention in it since the late 1980s. It also traces the trends in housing prices and affordability during the past two decades. An econometric analysis is then conducted to explore the determinants of long-run housing prices and how the structural change in mortgage lending around 2000 has impacted the housing price dynamics in Seoul and several other major cities. Finally, a set of policy implications is drawn from the analysis of housing prices and policy experiences.

Journal

Housing StudiesTaylor & Francis

Published: Nov 1, 2010

Keywords: housing affordability; housing policy; housing finance; structural changes; housing price dynamics; mortgage lending

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