Construction 133: Mood Changing in Korean Real Estate Market

 Construction 133: Mood Changing in Korean Real Estate Market

The author is an analyst of NH Investment & Securities. He can be reached at minjae.lee@nhqv.com. — Ed.  

 

MOLIT is aiming to strengthen the publicness of urban redevelopment projects by limiting the upper limit of the private profit rate to 10%. At this juncture, it is difficult to predict the mid/long-term direction of the real estate market due to differing policies of the major presidential candidates. Given such, uncertainties towards the construction industry are likely to amplify over the near term.

Strengthening publicness of urban redevelopment projects to be discussed in earnest

With the Korean presidential election drawing near, the profit structure of redevelopment projects conducted in Daejang-dong, Seong-Nam has emerged as an issue (Seong-Nam has been the political base for candidate Jae-myung Lee in recent years). The Korean Ministry of Land, Infrastructure and Transport (MOLIT) is soon expected to…

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