Analysis finds no sharp drop in Gangnam home prices even in the era of autonomous driving and AI
Professor Yoo Hyun-jun of Hongik University and Professor Kim Dae-sik of KAIST analyzed that home prices in key areas such as Gangnam will not plunge even if autonomous driving and AI change housing trends. They explained that housing prices are determined not by construction costs but by the “value network,” or connectivity with surrounding infrastructure, and by the concentration of assets.
Professor Yoo Hyun-jun of Hongik University and Professor Kim Dae-sik of KAIST appeared last 3day on the YouTube channel “Knowledge Inside” to explain the future urban spaces and housing trends that autonomous driving and AI will change. The two professors exchanged views on the impact of technological development on real estate. They also discussed changes in housing manufacturing costs and construction expenses during the appearance.
Professor Yoo analyzed that home prices in key areas of major cities such as Gangnam would not plunge even if housing manufacturing costs and construction expenses fell to about half their current levels. He said, “The fact that construction costs are cut in half does not mean that the home’s price will be cut in half.” He explained that the essence of housing prices lies not in the building itself but in the value of the infrastructure enjoyed by that space.
Professor Yoo defined this value as the “value network.” He said that accessibility to surrounding infrastructure determines future real estate value. Professor Kim added that the concentration of assets among emerging asset owners affects price determination.
The two professors put forward the hypothesis that technological innovation could enable the mass supply of prefabricated homes, while autonomous driving could make travel more convenient, allowing people to disperse to the outskirts. However, Professor Yoo expressed skepticism about the hypothesis. He said he was cautious about the premise that there would be no need to pay a high price to live clustered in urban centers.
The two professors pointed out that technological advances could ultimately deepen polarization in the real estate market. Their point was that the difference in value between core areas and outlying areas could widen. The content of the appearance summarizes the remarks made during the discussion.
Sources: 뉴시스 경제
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