In Seoul, South Korea, it is becoming increasingly difficult for ordinary people to buy a property. According to a recent survey report released by the Ministry of Land, Infrastructure, Transport and Tourism of South Korea, buying a property in Seoul in 2023 will take 15.2 years without food or drink, a figure that highlights the high cost of the local real estate market and the enormous pressure on ordinary families.
Analysis of the house-price-to-income ratio in Seoul
According to the report, the house-price-to-income ratio in Seoul has risen to 15.2 in 2022, which means that the average family needs to go without food or drink for 15.2 years to buy a house at an average price. This ratio has increased compared to 2021 (14.1 in 2021), reflecting the continued upward trend of prices in the Seoul real estate market. This upward trend not only increases the burden of ordinary families, but also reflects the contradiction between supply and demand in the real estate market and the increasing cost of living.
The increase in the home-price-to-income ratio in Seoul highlights the inaccessibility of housing in the area, especially for young people and first-time home buyers, a challenge that is even more daunting. This situation not only affects people's quality of life, but also has a profound impact on the social structure and economic development.
Comparison of the ratio of house prices to income in the metropolitan area and the whole country
The price-to-income ratio in Seoul is not unique in the metropolitan area. The house-price-to-income ratio in Incheon and Gyeonggi Province also rose, reaching 7.7 and 8.9, respectively, reflecting a general increase in housing prices across the metropolitan area. At the same time, however, the national average house-price-to-income ratio fell from 6.7 to 6.3, showing a significant difference in the real estate market between the Tokyo metropolitan area and other regions.
This contrast reveals the divergence of the real estate market in South Korea, with prices in the Seoul metropolitan area, especially in Seoul, continuing to climb, while prices in other regions are relatively stable or declining. Such differentiation not only reflects the concentration of population and economic activity, but may also exacerbate economic and social disparities between regions.
The current situation of housing for Korean families
In 2022, the proportion of home-owning households in South Korea was 61.3%, an increase of 0.7 percentage points year-on-year, the highest proportion since 2006. In the Tokyo metropolitan area, the proportion of households owning a home is the highest in the past 14 years. These figures reflect the importance that South Koreans place on real estate, while also pointing to the challenges faced by homeless households.
Despite the rise in the proportion of home-owning households, high housing prices are undoubtedly a huge obstacle for those who are still struggling to buy a home. This situation not only puts pressure on family finances, but may also affect the stability and harmony of society.
Public attitudes and expectations towards property
In South Korea, especially in big cities like Seoul, owning your own property has become a common goal and dream for almost most people. According to the survey, a whopping 89.7% of South Korean respondents believe that they should own their own property, an increase of 0.7 percentage points from last year.
This common perception reflects the importance of real estate in Korean culture, while also highlighting the pressures and challenges faced by ordinary families in the face of high housing prices.
Conclusion and reflection
The rise in the price-to-income ratio in Seoul and the entire metropolitan area reflects the current situation and challenges of the Korean real estate market. While the national average house-price-to-income ratio has declined, home prices remain high in big cities such as Seoul, and home ownership remains a distant dream for many families.
This situation has prompted policymakers and all sectors of society to rethink how to achieve a healthy and sustainable real estate market, ensuring that more families can realize their dream of owning their own property.
All in all, the rise in the house-price-to-income ratio in Seoul, South Korea, is not only an economic indicator, but also a social phenomenon that needs to be understood and addressed from a broader perspective. Looking ahead, how to maintain the vitality of the real estate market while improving the ability of ordinary families to buy homes will be one of the important challenges facing South Korea.