Condo advanced building websites are seen from Mount Nam in Seoul, Sunday. Yonhap
Excessive-priced residences are being more and more listed on the market on on-line second-hand markets, prompting considerations that direct billion-won transactions, not brokered by professionals, might result in disputes and even crimes, business officers mentioned Sunday.
Greater than 10 residences, every priced at 4 billion gained ($2.71 million) or extra, had been listed on Danggeun Market, the nation’s largest cellular platform for peer-to-peer gross sales of used items.
Most of the listings are in Seoul’s prosperous neighborhood of Gangnam, with the most affordable being Raemian Status in Banpo-dong at 4.35 billion gained.
Different notable listings in Banpo-dong embrace Raemian One Bailey at 10 billion gained, Raemian One Pentas at 10 billion gained, and the costliest amongst them, Acro River Park, at 11.5 billion gained.
“The rise of direct-deal housing transactions shouldn’t be seen as a passing curiosity, however as a rising development that deserves severe consideration amongst digitally savvy youthful Koreans,” mentioned Kwon Dae-jung, an actual property professor at Hansung College.
An actual property dealer, talking on situation of anonymity, shared an analogous view, noting that many patrons of those high-priced properties are of their 30s and 40s, conversant in cellular platforms and accumulating wealth quicker than their friends.
He mentioned direct offers might acquire floor as they save fee fess, which will be as much as 0.5 p.c of the traded quantity of the housing properties.
Below the circumstances, different specialists warned that the development carries “severe downsides,” as properties traded with out licensed brokers expose patrons to vital dangers — together with irrevocable errors and potential felony actions.
“In unsure instances, standardized procedures are extra vital than ever,” Kim mentioned, including “dangers improve proportionally with the worth of the property.”
Kim Je-kyung, chief marketing consultant at actual property company Tumi, mentioned, “Transactions of pricey residences can lead to losses which might be very troublesome to recuperate if issues come up, particularly these involving cast paperwork, id theft or fraud.”
He added that criminals typically “possess intensive data of actual property and function a number of steps forward of victims,” making it troublesome for nonexperts to detect intentional doc irregularities.
A wealth administration supervisor, who spoke on situation of anonymity, mentioned patrons ought to acknowledge that actual property acquisitions are “not simply easy purchases, however a key a part of their total asset portfolio.
“Seen from that perspective, brokerage commissions aren’t simply further prices,” the knowledgeable mentioned. “It’s typically way more helpful to have professionals overview possession, tax and financing issues than to save lots of a small quantity by way of direct buying and selling.”
In the meantime, some business officers mentioned that it’s unclear whether or not most listings for high-priced residences truly result in accomplished direct transactions, arguing that many posts are uploaded merely for publicity or promoting functions.
