House prices in major economies continue to rise despite COVID-19
- 3 years ago
코로나19가 밀어올린 세계 집값...서울 아파트 평균 매매가 8억4천400만원
Think back to the global recession a decade ago.
Trillions of dollars were wiped off the world's largest asset class as real house prices fell by an average of 10-percent.
Investors and homeowners were bracing for a similar situation this time around as the Covid pandemic pushed the world economy to the edges.
But, that concern looks misplaced as despite the pandemic-hit economic downturn, house prices continue to rise.
What's behind this unexpected phenomenon, our Eum Ji-young reports.
Despite a global recession triggered by COVID-19, house prices in most middle- and high income countries keep rising.
UK mortgage lenders say that the average price of a house in Britain hit an all-time high in September of around 325-thousand U.S. dollars,... up roughly seven percent on-year.
"The amount of transactions increased by about 70 to 80 percent in the short term."
It is driven by pent-up demand following lockdowns, a record low interest rate, and a temporary cut in property acquisition tax.
Analysts say more people working from home amid the pandemic was also behind the price increase.
"As more people stay home longer as they work from home, many are reconsidering where to live as they get more interest in improving their living environment"
U.S. home sales also soared to a 14-year high in August with the median price for all housing types at around 310-thousand dollars, driven by record low interest rates.
Other major economies also saw house prices rise compared to the same period last year with Germany posting a six-point-eight percent hike in the second quarter.
South Korea's property prices increased one-point-three percent on-year.
However, for Seoul alone, the average price of an apartment unit stood at over 735-thousand U.S. dollars, up about five-point-five percent on-year.
The average price of a flat in the popular Gangnam-gu District was around one-point-five million dollars.
Eum Ji-young, Arirang News.
Think back to the global recession a decade ago.
Trillions of dollars were wiped off the world's largest asset class as real house prices fell by an average of 10-percent.
Investors and homeowners were bracing for a similar situation this time around as the Covid pandemic pushed the world economy to the edges.
But, that concern looks misplaced as despite the pandemic-hit economic downturn, house prices continue to rise.
What's behind this unexpected phenomenon, our Eum Ji-young reports.
Despite a global recession triggered by COVID-19, house prices in most middle- and high income countries keep rising.
UK mortgage lenders say that the average price of a house in Britain hit an all-time high in September of around 325-thousand U.S. dollars,... up roughly seven percent on-year.
"The amount of transactions increased by about 70 to 80 percent in the short term."
It is driven by pent-up demand following lockdowns, a record low interest rate, and a temporary cut in property acquisition tax.
Analysts say more people working from home amid the pandemic was also behind the price increase.
"As more people stay home longer as they work from home, many are reconsidering where to live as they get more interest in improving their living environment"
U.S. home sales also soared to a 14-year high in August with the median price for all housing types at around 310-thousand dollars, driven by record low interest rates.
Other major economies also saw house prices rise compared to the same period last year with Germany posting a six-point-eight percent hike in the second quarter.
South Korea's property prices increased one-point-three percent on-year.
However, for Seoul alone, the average price of an apartment unit stood at over 735-thousand U.S. dollars, up about five-point-five percent on-year.
The average price of a flat in the popular Gangnam-gu District was around one-point-five million dollars.
Eum Ji-young, Arirang News.