Seoul Real Estate Attracts 2.5 Trillion Won as Investors Sell Financial Assets for Homes

From January to April this year, 2.48 trillion won, raised by selling financial assets such as stocks and bonds, flowed into the Seoul housing market. An analysis of fund-raising plans submitted to the Ministry of Land, Infrastructure and Transport by lawmaker Kim Jong-yang of the People Power Party revealed that the proceeds from the sale of financial assets into the Seoul housing market during this period amounted to a total of 2.480102 trillion won. This accounts for approximately 65.6% of the total 3.778899 trillion won from the sale of financial assets that flowed into the nationwide housing market during the same period.

Gangnam District recorded the largest inflow of funds from the sale of financial assets in Seoul, with 375.159 billion won. This was followed by Songpa District with 355.144 billion won, Seocho District with 302.010 billion won, and Yongsan District with 189.551 billion won.

Notably, areas with higher housing prices showed a greater proportion of home purchases financed by the sale of financial assets. Seocho District had the highest ratio of funds from financial asset sales to the total cost of home purchases. In contrast, outer Seoul areas like Nowon District had a lower proportion of funds from financial asset sales used for home purchases. These areas showed the highest reliance on loans from financial institutions in Seoul, at 39.67%, indicating that first-time homebuyers in these districts financed their purchases through borrowing, contrasting with the purchasing patterns in outer Seoul areas with high loan dependency.

The total transaction value that flowed into the entire Seoul real estate market from January to April this year was 36.692593 trillion won.