SEOUL, Dec. 14 (Korea Bizwire) — Even after the COVID-19 pandemic is over, the work-from-home trend will likely continue to increase, resulting in stronger incentives for people to move to suburban areas where housing is relatively cheap, the central bank said Sunday.
Koreans’ perceptions about working from home greatly improved after the coronavirus crisis compelled many workers to start telecommuting, according to the report compiled by the Bank of Korea (BOK).
As for the reason for its forecast that the telecommuting trend would continue to grow, the BOK stressed, “To ensure effective operation of work-from-home programs, employees and companies have already invested significant time and resources.”
It expected that the growing popularity of telecommuting would decrease overall demand for commercial real estate in metropolitan cities, while promoting the movement of workers to suburban areas.
The BOK noted that the growth in the number of people working from home would result in a reduction in the space needed for offices in metropolitan cities, where rent is high, thereby serving as one of the factors that could lower real estate demand there on a limited basis.
The central bank added that the popularity of telecommuting reduces the importance of geological proximity between homes and offices, creating incentives for workers to move to suburban areas where housing is more affordable.
However, given that the geological proximity between work and home is not the main reason for most people’s decision to live in metropolitan areas, the increase in demand for real estate in suburban areas resulting from the popularity of telecommuting would likely be limited.
Lina Jang (firstname.lastname@example.org)