(Provided by the Blue House Photo Correspondents)
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Seoul’s middle class needs to save 19 years of salary to buy a house… ‘The polarization of apartment prices in the Wen government doubles ↑’

(Provided by the Blue House Photo Correspondents)

A study found that the middle class had to save up for 7 years without spending a single penny to afford a house at the middle price level. This will increase to 19 years in the case of Seoul on a national basis.

According to data from the Korea Research Institute for Human Settlements on the 10th, as of the end of December last year, the national ‘Housing Price to Annual Income (PIR)’ was 7.6, based on the middle third of the total income and housing price.

The PIR is the house price divided by the household income, and it means that the middle class can afford a house at the median price level without spending a single penny for more than 7 years. In the case of Seoul, this number soared from 11.5 at the end of 2017 to 19 at the end of last year, reaching an all-time high.

Due to the Moon Jae-in administration, the polarization of the apartment sales market has more than doubled. According to KB Kookmin Bank’s monthly housing market trend time series statistics on the 10th, the ratio of the nationwide apartment sales quintile last month was 10.1. This is a historical figure among the monthly surveys conducted in December 2008.

The quintile multiplier refers to the value obtained by dividing the average price of the top 20% (quintile) by the average price of the bottom 20% (1st quartile) by dividing the houses into 5 categories in order of price. This is the price gap between high-priced and low-priced housing, meaning that the higher the multiplier, the greater the polarization.

Nationwide, apartments in the top 20% in price are more than 10 times higher than apartments in the bottom 20%. The average price of apartments in the bottom 20% of the country was 123.13 million won, and the average price of apartments in the top 20% was 1.247.07 billion won.

In April 2017, just before the inauguration of the Moon Jae-in administration, the ratio of the apartment sales quintile was 4.7, but the ratio has more than doubled over the past five years, exacerbating polarization.

In April, 5 New Core Apartments in Goheung-gun, Jeollanam-do (single area of ​​22.68m2) were each traded for 13.5 million won, while in Seoul last April, 241.93m2 for Galleria Foret, Seongsu-dong 1-ga, Seongdong-gu, was sold for 7.85 billion won, and 226.62 million won for Hyosung Villa Cheongdam-dong, Cheongdam-dong, Gangnam-gu. Each square meter was sold for 7.47 billion won.

In the same month, Cheongdam Upper House in Cheongdam-dong, Gangnam-gu (200.38 m², 6.75 billion won), Samsung-dong I-Park (195.388 m², 6.45 billion won), Acro River Park (129.92 m², 6.4 billion won) in Banpo-dong, Seocho-gu, Seongsu-dong 1-ga, Seongdong-gu Acro Seoul Forest (165.182 m², 6.2 billion won) was traded at 6 billion won.

The quintile ratio of the nationwide apartment rental market also rose from 4.9 to 8 during the same period. As of last month, in the nationwide apartment jeonse market, apartments in the bottom 20% were priced at 88.09 million won, while those in the top 20% cost 71.16 million won, a striking difference in price.

[황지수 인턴기자]
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Reference-www.mk.co.kr

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