Japanese House Builders Entering Korean Property Market
01 September 2011
Japanese house builders are beginning to make considerable inroads into the Korean property market, especially with detached homes, which are wooden houses built in a factory in Japan and relocated to Korea.
The Japanese are also buying a lot of property in the Korea, especially since Japan was hit by an earthquake in March. According to the Korean Land, Transport and Maritime Affairs Ministry, Japanese buyers have spent as much on Korean property during the second quarter of this year as they did during the whole of 2009.
Although the Japanese have been building houses in Korea for quite some time, they didn't use to market their properties, but now they are using aggressive marketing techniques and signing exclusive contracts with Korean sales partners. One of the top wooden house builders in Japan is Misawa Homes, and Toyota Group is its largest shareholder.
The company established a model home in Dongbaek in Korea in mid-August, and has already signed an exclusive contact with a company who will supervise sales in the country. It's not the only company to do so, as another house builder who is famous for steel framed homes is due to open a model home in the country in September.
Japanese house builders are viewing the Korean detached home market as a valuable new source of income, especially as the property market in Japan remains sluggish. Apparently Korea has an increasing demand for high-end attached homes, but lacks builders with sufficient experience.
The Japanese are also buying up land in Korea, and as this is thought to be largely due to the earthquake in Japan, it's far too early to say if Japanese investment into Korean property will become a trend.