70% of Seoul and Gyeonggi Residents Say "Not the Right Time to Buy Due to High Housing Prices"

KRIHS, 2021 First Half Real Estate Activity Survey
"Housing Investment Yields Higher Returns and Lower Risks Than Stocks"

[Image source=Yonhap News]

[Asia Economy Reporter Jo Gang-wook] Seven out of ten residents in Seoul and Gyeonggi areas perceive the first half of this year as not a good time to buy a house due to high housing prices.

According to the "2021 First Half Housing Search and Transaction Status and Market Perception in Seoul and Gyeonggi Areas" report by the Korea Research Institute for Human Settlements on the 16th, 67.4% of respondents viewed the first half of this year as an unfavorable period for purchasing a home.

The main reason was the high housing prices (66.4%). In particular, 63.6% of respondents also indicated that conditions for obtaining mortgage loans were unfavorable.

The Korea Research Institute conducted the "2021 First Half Real Estate Activity Survey" targeting general households (1,043 adults aged 19 and over) and brokerage offices (300 locations) in Seoul and Gyeonggi areas.

In the first half of this year, housing transactions in Seoul and Gyeonggi areas occurred at higher prices compared to the previous period, mainly among buyers in their 30s and 40s.

Among buyers in Seoul and Gyeonggi, those in their 30s accounted for 32.4%, and those in their 40s accounted for 32.9%, with higher income and assets correlating with a greater proportion of purchase transactions.

Additionally, during the same period, 82.3% of sales transactions, 87.0% of jeonse (long-term deposit lease) transactions, and 64.3% of monthly rent transactions were conducted at higher prices compared to the second half of last year.

Compared to other assets, housing was considered relatively less risky and more profitable. 67.3% of respondents viewed the expected returns on housing as "high," while 40.5% considered it "risky" as an investment.

When scoring the expected returns of assets, housing scored 5.1 points, higher than stocks (4.4 points) and savings/deposits (2.3 points). The expected risk score for housing was 4.1 points, lower than stocks (4.9 points).

This content was produced with the assistance of AI translation services.