HOUSING PRICES

[Anchor Lead]

A study found that it takes an average of 7.1 years for Koreans to make their first housing purchases. It was also found that in order to buy a house in the Seoul metropolitan area, a person has to save every single penny he makes for nearly seven years.

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Housing prices in the Seoul metropolitan area spiked dramatically last year. The Ministry of Land, Infrastructure, and Transport found that the Price Income Ratio for homes in Seoul and its vicinity stood at 6.9 times. That's the same level as in 2014, when the figure hit a record high. This figure indicates that a person has to save every bit of his or her income for 6.9 years to be able to afford a home in the Seoul metropolitan area. The national average is 5.5 times, which means that the price gap between the homes in Seoul and those in other regions has grown wider. The ministry also found that it takes 7.1 years for Koreans to purchase their first homes. The figure has gone up since last year.

[Soundbite] KANG MI-NA(KOREA RESEARCH INSTITUTE FOR HUMAN SETTLEMENTS) : "People were very interested in redevelopments in the Seoul metropolitan area last year, resulting in these figures."

The percentages of home ownership and homeowners who actually occupy their homes maintained the record-setting 2017 level. Meanwhile, the percentage of Koreans who think they must purchase their own homes fell slightly to 82.5%. A series of government measures has modestly improved the housing situation for young people and newlyweds. Fewer young residents are now living in dire conditions including the basement, semi-basement, or rooftop rooms, while an higher number of newlyweds now reside in their own homes. For this study, the Korean Research Institute for Human Settlements and Hankook Research conducted individual interviews on roughly 60,000 households for six months since last June.