00:02You're listening to AI Prism from Seoul Economic Daily.
00:06Korea's REIT market just hit 127 trillion won, nearly $90 billion, after growing five-fold in a decade.
00:17KB Cookman and Shin Han alone are sitting on 11 trillion won, about $7.8 billion, in mortgages with loan
00:26-to-value ratios above 80%.
00:30In Gwangmyung, one reconstruction complex saw prices jump 200 to 300 million won, roughly $142,000 to $212,000, in
00:43a single year.
00:45And Seoul is now weighing whether the entire Yongsan Park could deliver up to 40,000 new housing units.
00:55It's Tuesday, August 18th.
00:58Let's look at what's happening in Korea's property market.
01:03The government is revisiting its 2026 tax reform, after a leaked survey showed 47% of respondents wanted to keep
01:13the long-term holding deduction,
01:15nearly matching the 53% who backed switching to a residency-based system.
01:22Seoul's Yongsan district is emerging as a potential supply game-changer,
01:27with the land ministry now considering the full Yongsan Park site, not just the children's garden plot.
01:36Meanwhile, older complexes in Gwangmyung and Seoul's Sangdodong are moving through reconstruction,
01:43adding both supply and price momentum.
01:47Here's what the numbers show.
01:49KB Cookman and Xinhan combined hold about $10.9 trillion won, roughly $7.7 billion,
01:59in mortgages with LTV above 80%.
02:02And Xinhan's high LTV lending is up 4% from a year ago.
02:09In Gwangmyung's Han-Jugong complex, a 76-square-metre unit sold for $1.12 billion won,
02:18about $793,000, up $200 to $300 million won from levels just a year earlier,
02:27as reconstruction hopes emptied the resale market.
02:32Seoul's Sangdodong redevelopment plan clears the way for 1,840 units at up to 29 storeys
02:40under the city's fast-track approval this month.
02:44The land ministry is now weighing the full 3 million-square-metre Yongsan Park site,
02:50which could yield up to 40,000 units,
02:54more than half of Yongsan district's current housing stock.
02:59Korea's REIT sector reached $127.3 trillion won,
03:05about $90.1 billion, across 470 vehicles,
03:10a five-fold jump from $25.1 trillion won a decade ago,
03:16with average dividend yields near 11.8%.
03:21So what does this mean for buyers weighing a purchase this year?
03:26Earlier, we said Yongsan Park could unlock 40,000 units.
03:32Here's what that actually means for you.
03:35Real supply is still years off,
03:37tied up in special law changes,
03:40US-based transfers and soil cleanup.
03:44For now, rising high LTV mortgage exposure
03:48and record loan spreads mean buyers stretching to the loan ceiling
03:53face tighter scrutiny.
03:56Guangmyong's reconstruction rally,
03:58where thin inventory pushed one unit up over 200 million won in a year,
04:04shows how fast expectations alone can move prices
04:08before any shovel hits the ground.
04:12Things to watch
04:14The August 20th meeting between the land minister and Seoul mayor
04:19on Yongsan and Greenbelt land
04:22Whether the tax reform's deduction phase-out survives National Assembly review
04:27And permit timelines for Guangmyong's remaining reconstruction complexes
04:34That's today's AI PRISM real estate.
04:38This episode was produced with AI assistance
04:40based on Seoul Economic Daily reporting
04:43and reviewed by a human editor.
04:47AI PRISM is a WAN IFRA award-winning series.
04:51We'll be back tomorrow.
04:53You've been listening to AI PRISM from Seoul Economic Daily.
04:56AI PRISM
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