Reply: 2.1
From: Always Learning
My friend is Korean guy, he is living in Sydney now. He is "renting" out his house in Korea.
As he explained to me the rental market is total unlike anything in the western world. In Korean, private "pay-by-the-month" residential rentals is prohibited under law. Basically the "renter" has to hand over approximately the value of the property to the "owner", I don't understand fully, but the method is the "renter" purchases the property and the "owner" assumes the legal obligation to re-purchase the property back at a set price after two years. For example "renter" pays (basically takes out a loan) for 200K and buys the property from the owner, the owner then has the right to purchase the property back after 2 years lets say at $150K, he pockets the 50K as profit in lieu of rent!
This keeps renters out of the market and living with Mum and Dad until they can afford a house of their own! As you may imagine this would create a big demand for lower priced apartments, and keeps a lid on the housing crisis as it keeps the "kids" at home!