Get Ready for a Smart Home Revolution: 2024 Real Estate Market Predicts Soaring Prices and a Surge in Intelligent Living

▲Overview of factors influencing the housing market in 2025. (Source = Hana Financial Research Institute)

It is predicted that the real estate market will continue its gradual upward trend next year. It is analyzed that as the buying sentiment of actual consumers revives due to concerns about supply shortage, the trend toward ‘smart houses’ in the metropolitan area will become stronger.

On the 3rd, the Hana Financial Research Institute announced this in its recently published ‘2025 Real Estate Market Forecast’.

In the short term, the housing market is experiencing a shortage of supply for highly desirable properties, such as apartments in the metropolitan area. As the decrease in construction starts, the increase in construction cost burden, and the expansion of the construction period overlap, the possibility of a decrease in the number of completions in the long term has increased.

As supply expansion policies and follow-up measures, such as the government’s real estate ‘8/8 measures’, have been announced one after another, there is a possibility that the decrease in license volume will be small. However, due to high construction costs, shrinking local demand, and poor housing feasibility, the volume converted from permits to construction starts is expected to decrease.

The report said, “As of August this year, housing starts in the metropolitan area increased by 51% compared to the previous year, but completions decreased by 17%.” “In particular, in the metropolitan area, where actual demand and investment demand are abundant, the decrease in the number of occupancy is large, so the impact of the decrease in supply felt by the buying force is greater.” “It is,” he said.

A decrease in supply is expected to lead to a decrease in sales volume. Even if the quantity scheduled for sale this year is partially delayed to 2025, the total quantity for sale is likely to decrease compared to this year.

The subscription market appears to be clearly polarized. It is expected that subscription stagnation will continue in regional areas due to high sales prices compared to market prices, but core areas in the metropolitan area will do well due to expectations of price increases.

▲Overview of housing supply outlook in 2025. (Source = Hana Financial Research Institute)

On the demand side, the tightening of lending regulations is expected to have an impact as borrowing capacity decreases. The report states, “Especially stress Total debt principal and interest repayment ratio(DSR) After the expansion of application, transaction volume is expected to slow down, base interest rate “It is necessary to pay attention to the possibility of a decline in mortgage loan interest rates after the decline,” he explained.

The sales market will maintain a trend of moving around actual demand, but buying power is expected to expand in the second half of the year. This is because there is a high possibility that it will lead sales transactions next year based on expanding buying sentiment and recovery of actual transaction prices.

Regarding this, the report explained, “Buyers with household surplus funds are concentrated in the metropolitan area, where price recovery is fast and there is high waiting demand, and upward transactions are likely to increase.”

However, it appears that it will be difficult to narrow the gap between provinces and the metropolitan area. This is because buying power is expected to be concentrated on a ‘smart house’ with little risk of price decline due to its excellent location in the metropolitan area.

The report said, “Apartments in key areas of the metropolitan area, where demand is high and liquidity is high, are represented by a smart unit, and market differentiation by region will deepen,” adding, “If concerns about a lack of supply stimulate the buying trend, the phenomenon of listings being locked in some highly desirable areas may occur.” “There is a possibility that cases of intensified and high-priced transactions may also occur,” he added.