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House prices in major economies continue to rise despite COVID-19

2020-10-12 1 Dailymotion

코로나19가 밀어올린 세계 집값...서울 아파트 평균 매매가 8억4천400만원<br /><br />Think back to the global recession a decade ago.<br />Trillions of dollars were wiped off the world's largest asset class as real house prices fell by an average of 10-percent.<br />Investors and homeowners were bracing for a similar situation this time around as the Covid pandemic pushed the world economy to the edges.<br />But, that concern looks misplaced as despite the pandemic-hit economic downturn, house prices continue to rise.<br />What's behind this unexpected phenomenon, our Eum Ji-young reports.<br />Despite a global recession triggered by COVID-19, house prices in most middle- and high income countries keep rising.<br />UK mortgage lenders say that the average price of a house in Britain hit an all-time high in September of around 325-thousand U.S. dollars,... up roughly seven percent on-year.<br />"The amount of transactions increased by about 70 to 80 percent in the short term."<br />It is driven by pent-up demand following lockdowns, a record low interest rate, and a temporary cut in property acquisition tax.<br />Analysts say more people working from home amid the pandemic was also behind the price increase.<br />"As more people stay home longer as they work from home, many are reconsidering where to live as they get more interest in improving their living environment"<br />U.S. home sales also soared to a 14-year high in August with the median price for all housing types at around 310-thousand dollars, driven by record low interest rates.<br />Other major economies also saw house prices rise compared to the same period last year with Germany posting a six-point-eight percent hike in the second quarter.<br />South Korea's property prices increased one-point-three percent on-year.<br />However, for Seoul alone, the average price of an apartment unit stood at over 735-thousand U.S. dollars, up about five-point-five percent on-year.<br />The average price of a flat in the popular Gangnam-gu District was around one-point-five million dollars.<br />Eum Ji-young, Arirang News.<br />

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