Homes in Seoul Cost 8.7 Years' Worth of Average Income
19 May, 2019
A salaryman would have to save every penny he earned for 8.7 years to buy a home in Seoul, surrounding Gyeonggi Province or Incheon, according to the Ministry of Land, Infrastructure and Transport.
Ministry data show that the price-to-income ratio of buying a home in the capital region stood at 8.6, which translates into 8.7 years' worth of spending nothing on food, clothing or anything else and putting every penny in the bank.
Nationwide, ratio is 6.7 times up from 6.4 times in 2017. In Seoul it has risen from 7.9 times in 2017 due to an out-of-control housing market.
But a ministry spokesman said the figures do not yet reflect recent government curbs on housing prices and at the end of 2018 home prices in Seoul began to drop.
The proportion of people living in homes they own was unchanged from the previous year at 57.7 percent.
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