Korea's bust has turned to boom. Property values in Seoul have leapt by as much 55 per cent in the first half of 2009 as Koreans rush to buy homes again, after a collapse in prices last year.
The turnaround is all thanks to a USD52 billion Government stimulus package, lower capital gains tax and new rules to encourage reconstruction of older buildings, combined with record-low interest rates.
Speculators are targeting older, low-rise blocks that may be bought by a builder for redevelopment. This follows the government's decision in November 2008, to raise the floorspace-to-land ratio to 2.5 times from 1.9 times, allowing developers to replace old, low-rise buildings with more profitable high-rise blocks.
Boosting buyer confidence is news that the economy started growing again this year, albeit by only 0.1 per cent in the first quarter, after contracting sharply by a 5.1 per cent in the last quarter of 2008.
(All The World's a Home : Global Property News)
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