SEOUL, May 13 (Korea Bizwire) – Growing income inequality is dividing the prospect of home ownership in the nation as a recent survey suggests some could take as much as nearly ten years longer than others to buy their first home.
Nearly one in three households in Seoul predicted it would take at least another ten years before they would be able to purchase their first home, while one in four said less than a year, according to an infographic released by the Seoul Institute yesterday.
The shocking discrepancy highlights the growing income gap and austerity facing South Korea in recent years, which is seeing people spend up to ten more years climbing the property ladder than others.
According to the findings, 21.4 percent of the respondents said it would take them 5 to 10 years to purchase a home, while 10.2 percent said 3 to 5 years.
Only 5.6 percent said it would take 2 or 3 years years while a mere 3.5 percent said they would only need 1 or 2 years to buy their first home.
The striking contrast in the average length of time spent saving for a home among Seoul residents falls in line with the 2015 report on Seoul’s social welfare published last month by the Seoul Institute which named the capital as the city with the biggest income inequality in the nation.
The survey also found that more than 75 percent of households in Seoul end up purchasing an existing home, while 16 percent go for newly built homes.
On average, Seoul residents live in four different dwellings before purchasing their first home.
With regard to the size of property, houses and apartments between 60 and 85 square meters were most popular among first time home buyers, accounting for 37.5 percent.
Housing properties between 40 and 60 square meters in size came second.
The infographic published by the Seoul Institute was drawn based on findings from last year’s housing survey conducted by the Ministry of Land, Infrastructure and Transport.
Hyunsu Yim (email@example.com)