South Korea’s property market facing critical oversupply issue

South Korea’s property market faces a massive oversupply issue causing local government areas and property developers to pause construction which could have ramifications for future investment.

With an ageing and declining population, giant apartment blocks line the streets of Seoul with fewer people to fill them.

This starkly contrasts the severe lack of housing and growing population witnessed in Australia.

REA Group Senior Economist Eleanor Creagh said the only sustainable solution to affordability challenges is to build more of the “right homes” in the places people want to live.

“We have ongoing affordability issues in Australia so we know … the supply of new homes hasn’t kept up with demand as a result housing in Australia is very expensive,” she told Sky News Australia.

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