Small Size Apartment Turned to Be the Best Means for Investment

It has been shown that the real estate was the best financial investment of the year while stocks were sluggish. This was due to the fact that the money flew into the real estate market due to the stock market tumble and the fall of the interest rate.

Daishin Securities Company announced on the third that the small size apartment marked the best profit rate according to the analysis on its investment goods of bonds, savings, and real estate.

The current price of 20-pyung apartments in Mokdong 4th area is 145 million, rising 38.1 percent of original price 105 million won. The price of 27- pyung apartment also rose to 210 million from 165 million, which is 27. 27 percent profit rate.

The price of 55- pyung apartments went up from 470 million won to 525 million won and 45- pyung apartment prices went up from 430 million won to 435 million won. 35-pyung apartment prices stayed in 320 million won. This showed that the middle and large size apartment price did not go up much.

Affected by the U.S. terror incident, as the demand for gold increased, the price hiked up accordingly.

The wholesale price of one- don gold increased from 44 thousand won to 51 thousand won, increasing 15.9 percent. And gold marked second in investment profit rate next to small size apartments. The retail price also went up from 52 thousand to 59 thousand won on the 28th last month, marking 13.46 percent of profit rate.

As the expectation for the recovery of economy looked grim, investors preferred safe property such as bonds endorsed by nation, public company, and healthy company.

If one bought 3-year company bonds (based on AA of LG chemistry), one could have had 14.60 percent of profit rate. If one bought 3-year bonds for city development issued on November 1998 early this year, one could have had 11.82 percent of profit rate.

Meanwhile, bank saving marked low profit rate due to decrease of interest that followed Korean Bank policy. For example, one year saving account marked only 4.19 percent interest rate, after tax reduction.

But among all, stocks marked the worst profit rate. The total index fell 7.92 percent to 479.68 from 520.95. Kosdaq also fell down 7.30 percent to close at 51.64. It was 55.71 in the early this year. It is a striking phenomena contrasted to the situation of the early this year when stock was considered as the best means of investment.

Meanwhile, won rose against dollar only 2.24 percent and became 1298.90 won from 1276.40.

Kim Do-Young nirvana1@donga.com