Save Your Money for 41 Years to Buy Home in Seoul

The Korea Times

The Korea Times

National

Fri, December 8, 2023 | 09:12

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Save Your Money for 41 Years to Buy Home in Seoul

Posted : 2009-10-08 17:13

Updated : 2009-10-08 17:13

By Kang Hyun-kyung
Staff Reporter

Until three years ago, average income earners living in Seoul were able to purchase their own decent three-bedroom housing in the metropolitan area if they had saved money for 30 consecutive years.

But, now these same workers have to save for approximately 41 years to get their own house with the same conditions, according to a ruling Grand National Party (GNP) lawmaker, Thursday.

Rep. Kim Tae-won blamed Seoul Mayor Oh Se-hoon for the ambitious urban beautification project under the slogan ``Seoul Renaissance,'' saying this has played a critical role in pushing housing prices higher in the capital.

``Mayor Oh has unveiled a variety of urban development projects since taking office in July 2006, but he neglected to come up with a set of measures to fight the property bubble,'' Kim said during the National Assembly inspection of the Seoul city government.

``Income earners and young graduates have to work harder and longer to buy their own place due to the plan, which had not addressed the effect of urban development plans on housing prices.''

Since taking office, Mayor Oh has spearheaded a long-term urban beautification initiative, setting aside several districts to accommodate high-rise buildings and eco-friendly urban parks, and reconstructing roads.

With the plan, Oh aims to make Seoul a hot tourist destination.

Three large-scale development projects in the Northeast, the Southwest, and the Han River and Namsan neighborhoods were included in the long-term project.

Realtors say those urban development projects have boosted housing prices, making it more difficult for residents to have their own home.

The Nowon district, notheast of the Han, saw the highest increase in prices ― up approximately 60 percent, followed by Gangbuk (38.3 percent), Jungnang (37 percent) and Dobong (33.6 percent).

These districts are in the category of the Northeast Renaissance project.

In contrast, housing prices in the wealthy southern districts such as Gangnam, Seocho and Songpa went up relatively slowly at 6.1, 5.2 and 5 percent, respectively. These districts were not included in the massive urban development project.

The discrepancy in price rises appears to support the notion that the urban development project targeting relatively poor areas has had an effect on affordable housing.

Rep. Kim said prices would have gone up further if the economy had not been hit by the global financial meltdown.

Amid soaring housing prices over the past three years, the increase in family income was just 4.9 percent.

hkang@koreatimes.co.kr