President: "Real Estate Prices Highest Relative to Income in the World"... Gap with Statistics [Real Estate AtoZ]

PIR: 13 According to the Ministry of Land, 10.5 by KB, 8 by Korea Housing Finance
Seoul Home Prices High, But "World's Number One" Is an Exaggeration
Hana Securities: "4.9 Years for Top 10% Income Bracket... A Market for Those Who Can Afford It"

President Lee Jaemyung stated at a cabinet meeting on the 14th that "in terms of national income, real estate prices in Korea are probably the highest in the world." However, when recent statistics and expert analyses are considered, there is an assessment that this claim is not aligned with reality. Some interpret the remark as a political move ahead of the announcement of additional regulations.

Yonhap News Agency

According to the Ministry of Land, Infrastructure and Transport on the 15th, the "2023 Housing Survey" released at the end of last year showed that the Price to Income Ratio (PIR) for owner-occupied households in Seoul was 13 times the median income. PIR represents the number of years it would take to purchase a home if the entire annual income were saved. Based on the median price in the second quarter of 2025, KB Real Estate reported a PIR of 10.5, while the Korea Housing Finance Corporation's April 2025 statistics showed a PIR of 8, indicating some variation between institutions.

While these figures are not considered low, experts point out that it is difficult to definitively declare Korea as "number one in the world." Lee Changmoo, a professor at Hanyang University, explained, "PIR can vary greatly depending on the calculation unit (urban, metropolitan, national) and the representative value used (average, median). It is also true that there is no internationally reliable data, but it is hard to argue that Seoul's level is excessively high compared to major cities in advanced countries such as New York."

In fact, there are few international statistics that allow for direct comparison of house prices relative to income. Institutions such as the International Monetary Fund (IMF), World Bank, and Organisation for Economic Co-operation and Development (OECD) do not compile PIR figures. On Numbeo, a global country and city comparison site, Seoul's PIR is listed as 27, ranking 15th in the world.However, this site relies on user-submitted data, which has been criticized in academia for its low reliability.

Park Hapsoo, a professor at Konkuk University, commented, "It is difficult to say that Seoul's PIR, at 8 to 13, is low, but ranking countries internationally without considering differences in calculation methods, the proportion of public housing, and housing types is unreasonable. For accurate comparison, data must be standardized and analyzed over time." According to KB Real Estate statistics, Seoul's PIR peaked at 14.8 in the second quarter of 2022 and has been declining since. In the second quarter of this year, it was 10.5. This trend is interpreted as a result of higher incomes among those purchasing apartments in Seoul, despite rising apartment prices.

Hana Securities, in a report released in the first half of this year, argued that it is difficult to simply label Seoul's PIR as "overvalued." Specifically, the PIR for the top 10% income households in Seoul was 4.9 years, and the national average was around 3 years. The report stated, "One might wonder who is buying apartments in Seoul at 1 billion won per 3.3 square meters, but it is those who can afford it. The market for the top 2% (apartments in the three Gangnam districts) and the top 10% (apartments in Seoul) belongs to buyers in those income brackets, and whether prices are high or low should be judged according to their circumstances."

Meanwhile, some interpret the president's remarks as a political move ahead of the government's announcement of additional regulations. Professor Lee Changmoo noted, "There is a possibility that this is a signal to justify new regulations. Policymakers should present clear statistics and evidence to avoid causing unnecessary misunderstanding and anxiety in the market." Professor Park Hapsoo also stated, "To maintain trust in policy, it is necessary to present specific indicators and measures, rather than simply inciting fear."