Foreign Property News | Posted by Si Thu Aung
Despite adjustments taking place in the real estate market amid economic slowdowns at home and overseas, many of South Korea’s wealthy have no plans to reduce the percentage of their assets represented by real estate, a study shows.
Many were also found to regard real estate as having made the largest contribution to their current level of wealth.
According to a 2019 report on South Korea’s wealthy published on Jan. 28 by KEB Hana Bank and the Hana Institute of Finance, 84% of South Korea’s wealthy population predicted the real estate economy would suffer stagnation or slump conditions over the next five years.
The results show an even higher level of pessimism than the previous year’s stagnation/slump forecast of 78%.
On average, real estate was found to account for the largest portion of their total assets at 50%, up from 47% the year before.
The KEB Hana Bank and Hana Institute of Finance report was based on findings from two months of surveys begun in Oct. 2018 with 992 customers of the Hana Bank PB Center (an asset management organization) with financial assets of one billion won (US$895,820) or more.
Despite their negative outlook on the real estate economy, the wealthy survey participants generally adopted a “wait and see” approach, opting to keep their current asset distribution untouched.
Forty-six percent said they planned to maintain their current distribution of assets, while 18% said they planned to reduce real estate and increase financial assets and 13% said they planned to increase real estate and reduce financial assets.
Ref: Property Report
