'Gangnam style society?

And he said to them, “Take care, and be on your guard against all covetousness, for one's life does not consist in the abundance of his possessions.” (Luke 12:15)

The government has stepped in again to curtail the euphoria in the property market by restricting the tenure of mortgage loans. The fact that currently more than 45% of the new loans are at least 35 years or longer is indeed alarming. Maximum tenure is the game in property investment now. People are buying on the premises that interest rate and vacancy rate will stay forever low, and the monthly rental is sufficient to meet the repayment installments. The other presumption is that property price can only go one way-up (uninterruptedly)! When my friend recently told me that one of her clients, a medical doctor, actually owned eight properties, I realized where the huge demand for property comes from.

The ‘feel rich’ phenomenon is most pronounced in the last two years after the frenzy rise in the property prices. Many people are trying to borrow big and for longer period, hoping to make money to achieve their ‘dream lifestyle’ or ‘retirement fund’. The more disturbing thing is that older people are joining the 'party'. This ‘wealth illusion effect’ can make one being carried away and over-estimate his ability to service the loan. All these remind me of the ‘Gangnam style’ video by Korean singer, Psy. In most countries, it is the economy that the property market, but in this country, it seems the other way round. Are we creating a ‘Gangnam style’ society?

In Korea, Gangnam is the icon of the rapid economic development of South Korea in 1970s and 80s where landowners and speculators became wealthy practically overnight from the real estate investment frenzy. It has become the most wealthy and affluent area in the entire South Korea. Its name has come to be associated as a place where people are rich, girls are pretty and everything is supposed to be cool and fun, with upscale fashion and lavish lifestyle that set the trends for others to follow. However, it also inspires a mixture of desire, envy and bitterness, causing social rifts amongst the people. People living there spending big on foreign luxury goods to highlight their wealth while those who uphold the virtues of hard work and sacrifice finding themselves barely making ends meet.

Signs of  ‘Gangnam style’ culture is already here. There are more Lamborghini, Ferrari, McLaren found on the road (what can the owners do with these cars other than flaunt their wealth?); up-market restaurants are mushrooming, and not forgetting, more ultra luxury apartments designed by world renowned architects are built here.