This file photo shows a bird’s eye view of a residential area in Seoul. (Yonhap)
SEOUL, April 4 (Korea Bizwire) – While housing prices began to drop last year, households making the median income still struggle to buy apartments in Seoul, data showed Monday.
Last year’s housing opportunity index for the capital city was 3.0, which indicates that only 3 out of 100 apartments in the city are within the purview of purchasing, even with a loan, according to the Korea Housing Finance Corp.
A score of 100 on the index indicates that all households making the median income would be capable of buying a home.
Seoul’s index stood as high as 32.5 points in 2012 before dropping to 20.2 points in 2016 and only 2.7 in 2021.
In contrast, last year’s housing affordability index for the fourth quarter stood at 81.4 points, down by 7.9 points from the previous quarter.
Taking into account the payment of 25 percent of household income to cover mortgage payments, the index counts up to 100.
Last year’s housing affordability index for the fourth quarter stood at 198.6 points. Although it dropped by 16 points from the previous quarter, it was still close to the 200-point hurdle.
This indicates that households in Seoul making the median income should devote at least half of their income to mortgage payments.
Lina Jang (linajang@koreabizwire.com)
