[Essay Writing HW#3] Gangnam never dies: the demand and supply

Gangnam never dies: the demand and supply 

Gangnam house price will not go down 

demand-supply.  

1) Demand1 
there is huge demand for children education in equilized environment  
parents don't want their children play&study with friends from less-previliaged household. 
schools with long history are in Gangnam area due to 1980s policy 

2) Demand2 
Shopping, Workspaces, Intrastructure(roads, metro..) are centralized in Gangnam 
companies gathers in gangnam area  
People love to live near their office due to heavy traffic.  

3)  Supply 
limited area with aged buildings 
the biggest roads in seoul places in Gangnam and it make able to gather more people.  
possibly government can ease rebuilding in gangnam area so the supply increases until meeting the huge demand. Pressing down the demand won't work. let people rebuild the old apartments 

for these reason, as opposite to the government wish, the house price of gangnam unlikely decreased.  
to solve the problem in demand-supply side, government should understand why people demanding the area comprehensively and stop trying to limit the supply. Unless the underlying demand and supply conditions are changed, the socket rise of Gangnam houses price would not be extinguished.

 

"Gangnam never dies" is a famous phrase among real-estate investors. Especially for people who are in interested in housing properties, Gangnam is the most favored area in Korea. To figure out what makes Gangnam so popular, it is necessary to analyze price decision factors, such as demand and supply. Enthusiasm for a better educational environment drives overwhelming demand for Gangnam housing among parents with school-age children. Per recent news, elementary schools in Gangnam are over-populated, in contrast to the overall trend towards decreasing class sizes(Dong-A, 2019). There are many well-established elite high schools located in Gangnam. The concentration of elite schools leads to a district full of students who are focused on studying.  

Infrastructure is the second factor which brings people in Gangnam. Not only are a number of companies located in Gangnam, but also transportation hubs and shopping centers make the district more attractive. Numerous shopping centers such as Coex and Lotte World Mall make living nearby more convenient. The in-city airport, the express bus terminal and the roads which lead straight to highways are beneficial for Gangnam residents. By living their offices, commuters can reduce travel times and costs.

Finally, housing in Gangnam is in short supply. An increasing number of people are willing to live in Gangnam, but there is a limited number of houses due to physical constraints. Furthermore, a considerable proportion of the current housing stock is more than 30 years old and needs to be rebuilt. However, government regulators keep impeding the rebuilding of existing residential buildings, and developers have been unable to renovate or rebuild aging housing. As a result, the housing supply is not likely to increase in the short term. 

In conclusion, many real-estate experts agree that Gangnam housing exhibits excess demand and limited supply. Excess demand forces the price of Gangman houses to rise. Unless supply increases through rebuilding old neighborhoods or relaxing altitude restrictions, there will continue to be supply shortfalls. Market participants should reconsider their perspective toward rising housing prices.