Residential developments in Seoul, South Korea is also seeing a supply crunch as construction projects from acquiring land to applying for building permits usually need about 10 to 13 years currently.
In addition to that, between 2016 and 2019, the number of single-person homes increased by 13 per cent to make up about a third of all households, while the nation's population edged up a mere 1.2 per cent to 51.8 million, Statistics Korea data showed.
South Korean policymakers have noticed an unexpected increase in the number of people living alone from last quarter of 2020 leading to a soaring demand for homes possibly from increased family tensions due to pandemic anxiety.
Property sales measured by area climbed 2.6% to 1.76 billion square meters, while by value they rose 8.7% to 17.4 trillion yuan, both the highest since the data series began in 1991, according to figures (link in Chinese) released Monday by the National Bureau of Statistics (NBS). The full-year increase reversed a plunge in the first two months of 2020 when year-on-year sales by area (link in Chinese) slumped 39.9% and sank 35.9% by value as large swathes of the country went into lockdown to control the virus.
China’s economic gross domestic product is expected to grow by around 2 per cent this year in 2021 — a significantly better result than any other major economy, most of which are expected to suffer sharp contractions. One of the primary reasons for this resilience has been the relentless march of its property market. Construction activity has increased and house prices in major cities continue to rise.
THE Canadian housing market capped off a record 2020 with a frenzied final month amid a rush to take advantage of low mortgage rates and buy bigger homes to ride out the Covid-19 pandemic. National home sales rose 7.2 per cent in December from the previous month, pushing total transactions for the year to a record 551,392 units, data released from the Canadian Real Estate Association (CREA) showed. Benchmark home prices were up 1.5 per cent on the month, bringing them 13.1 per cent higher from year-ago levels, while average home prices across the country reached a record US$607,280.
With banks offering mortgage rates below 1 per cent for the first time ever and a pandemic-induced desire for home offices and backyards, Covid pandemic led to many Canadians desiring to live separate from families by buying their own private property and others requiring a need for bigger dwellings with the ability to afford them. Even as a resurgence of coronavirus infections brings new lockdowns, a historic dearth of housing supply across the country leaves little prospect for the market cooling off in 2021.
Low available supply is the reason property values will continue to go up. While there were some regional nuance in prices, sales spiked in nearly every market across Canada.