Housing assets with a transfer price of over one billion KRW South Korea 2018-2023

In 2023, a total of 214 properties in South Korea were reported for capital gains tax with transfer prices exceeding one billion South Korean won. This showed a decline compared to 440 units in 2022. The total confirmed transfer price for these transactions in 2023 was around 359 billion won.

Trends in home financing and mortgage loans

In South Korea, wealthier households are increasingly relying on mortgage loans. By September 2023, over 1.1 million households with annual incomes exceeding 100 million South Korean won accounted for over 35 percent of all households with mortgage loans. This shows the growing trend of higher-income households taking on debt for home purchases. In Seoul, over 247,600 households in this income bracket had mortgage loans, accounting for more than 47 percent of mortgage-holding households in the city.

Housing market shifts and decline

The South Korean housing market is undergoing significant changes in both rental patterns and real estate sales. From 2022 to 2023, the rent-to-jeonse ratio increased by 0.6 points, indicating a shift in housing costs. Jeonse, a system where tenants pay large upfront deposits instead of monthly rent, continues to play a major role in the market. Meanwhile, the pre-construction real estate market saw a sharp decline in 2023, with only around 227,500 units sold, a notable drop from previous years. This shows a slowdown in new home purchases amid changing economic conditions.