Survey shows that 4 out of every 10 respondents expect home prices to rise
- Date 2016-02-18
- Views 581
- 50% of respondents want to buy a home within three years -
- The desired home price average is KRW 304.5 million -
- The desired home price average is KRW 304.5 million -
A survey showed that four out of every 10 respondents expect home prices to climb. Furthermore, 50% of prospective home-buying households said that they are willing to purchase a home within the next three years.
Korea Housing Finance Corporation (HF, CEO Kim Jae-Chun) announced on the 18th that it conducted the ‘2015 Survey on the Demand for Bogeumjari Loan and other Housing Finance Services.’ The survey polled 5,000 ordinary households and another 2,000 households with Bogeumjari Loans and other HF mortgage financing services.
□ 40% of the surveyed households expect a rise in home prices
Asked about the future home prices, 40.9% of the 5,000 households said that they expect home prices to
climb. This figure is a 3.2%-point increase from a year earlier, continuing its upward trend since 2012. In the
meantime, the share of those who said that home prices will remain the same is 38.8%, a 21.7%-point increase
from a year earlier and also the highest level since 2012.
Notably, the share of those who forecast a rise in home prices is particularly high in the groups of respondents
in their twenties (56.6%), non-home owning respondents (44.8%), and respondents residing in Seoul (40.3%).
【Trends in Home Price Forecasts】
(unit: person, %)
| Classification | Total surveyed | Home-owning households | Non-home-owning households | ||||||
| 2013 | 2014 | 2015 | 2013 | 2014 | 2015 | 2013 | 2014 | 2015 | |
| No. of respondents (person) | (5,000) | (5,000) | (5,000) | (2,973) | (3,120) | (3,102) | (2,027) | (1,880) | (1,898) |
| Home prices likely to go up | 30.6 | 37.7 | 40.9 | 28.9 | 36.2 | 38.5 | 33.1 | 40.2 | 44.8 |
| Home prices likely to remain the same | 28.0 | 17.1 | 38.8 | 24.8 | 15.4 | 42.4 | 32.6 | 19.8 | 33.0 |
| Home prices likely to go down | 41.4 | 45.2 | 20.3 | 46.3 | 48.4 | 19.1 | 34.3 | 40.1 | 22.2 |
The share of households intending to purchase a home within the next three years is 49.5%, a 3%-point increase from a year earlier, driven mostly by respondents in their 40s.
【 Trends in When to Buy a Home 】
(unit: %, %p)
| Classification | No. of respondents (person) | In three years | In three to four years | In four to five years | In five to six years | In six to ten years | In more than 10 years | |||
| In one year | In one to two years | In two to three years | ||||||||
| 2015 (A) | (3,777) | 49.5 | 9.4 | 18.3 | 21.8 | 13.1 | 11.3 | 8.7 | 12.8 | 4.7 |
| 2014 (B) | (3,864) | 46.5 | 9.3 | 16.6 | 20.6 | 13.4 | 12.2 | 9.1 | 12.9 | 6.0 |
| YoY change (A-B) | 3.0 | 0.1 | 1.7 | 1.2 | -0.3 | -0.9 | -0.4 | -0.1 | -1.3 | |
□ The desired home price average stands at KRW 304.58 million
The survey also found that the home price desired by prospective home buyers averages KRW 304.58 million. On average, they say that they are willing to pay KRW 426.34 million for a home in Seoul.
The desired home price has been on a steady increase since 2012 from KRW 263.88 million in 2012 to KRW 278.07 million in 2013, KRW 285.44 million in 2014, and KRW 304.5 million in 2015.
【Trends in the Desired Home Price】
평균 : On Average
2억6,114만원 : ￦261.14MN
2억7,579만원 : ￦275.79MN
2억6,388만원 : ￦263.88MN
2억7,807만원 : ￦278.07MN
2억8,544만원 : ￦285.44MN
3억458만원 : ￦304.58MN
(사례수: 주택구입의향가구 3,777명) : (3,777 prospective home buyers)
Asked about the desired home size, 52.7% of the prospective home buyers said 85m2 to 135m2 and 37.8% of them said 85m2 or less.
【Trends in the Desired Home Size】
(unit: %, %p)
【Tenants: Why they have rented a public rental housing unit】
【Tenants: Whether to maintain the existing tenancy】
| Classification | No. of respondents (person) | 85㎡ or less | Over 85㎡ to 135㎡ | Over 135㎡ | ||
| 60㎡ | Over 60㎡ to 85㎡ |
|||||
| 2015 (A) | (3,777) | 37.8 | 3.8 | 34.0 | 52.7 | 9.5 |
| 2014 (B) | (3,864) | 36.2 | 3.8 | 32.4 | 54.2 | 9.6 |
| YOY change (A-B) | 1.6 | 0.0 | 1.6 | -1.5 | -0.1 | |
□ Mortgage loans taken out by home-owning respondents average at KRW 105.65 million
On average, home-owning respondents said that they have taken out a mortgage loan of KRW 105.65 million. Of the respondents with a mortgage loan, 84.6% said that they feel the amount of the loan is just enough. In particular, those with a mortgage loan responded that they pay a monthly repayment of KRW 620,000 on average. Asked on the term of their loan, 23.7% of them said 30 years, 18.7% 20 years, and 16.9% 10 years.
On average, home-owning respondents said that they have taken out a mortgage loan of KRW 105.65 million. Of the respondents with a mortgage loan, 84.6% said that they feel the amount of the loan is just enough. In particular, those with a mortgage loan responded that they pay a monthly repayment of KRW 620,000 on average. Asked on the term of their loan, 23.7% of them said 30 years, 18.7% 20 years, and 16.9% 10 years.
□ 56.7% of respondents say that they will choose a fixed rate if taking out a mortgage loan
Out of 1,802 prospective home buyers intending to take out a mortgage loan, 56.7% said that they will choose a fixed-rate loan. This 3.2%-point increase from a year earlier is because it will not give them an extra financial burden even with a rate hike. Asked on the appropriate debt-to-income ratio, they said 16.3%.
The prospective home buyers who are willing to take out a mortgage loan said that they want an average mortgage loan of KRW 133.60 million, a KRW 14.78 million increase from a year earlier. Asked about the desired repayment method, 46.7% chose equal principal and interest repayment and 40.5% equal principal repayment.
□ Respondents say that the average desired jeonse deposit is KRW 156.66 million
The survey found that households who wish to rent a house are willing to pay KRW 156.66 million for their jeonse security deposit. The share of those willing to pay more than KRW 200 million for the deposit stands at 31.3%, a 2.7%-point increase from a year earlier. Asked about the preferred size of a rented home, 69.4% of them said they would rent a 85m2 or less home.
In addition, the average loan amount per rented house is found to be KRW 59.27 million, up by KRW 12.36 million from a year earlier.
□ The survey shows a need for more public rental housing units to improve housing stability for low-income
households
Among 1,948 households living with jeonse or monthly rentals, the share of those living in a public rental home only stands at 12.8%. The key reason why they have chosen the public rental unit is‘a low monthly rental (or jeonse) fee’ and‘long-term residential stability.’Furthermore, 82% of them said that they wish to maintain the current jeonse or monthly rental contract, indicating that there is a need to expand the provision of public rental housing units to enhance the residential stability of low-income, non-home-owning households.
Out of 1,802 prospective home buyers intending to take out a mortgage loan, 56.7% said that they will choose a fixed-rate loan. This 3.2%-point increase from a year earlier is because it will not give them an extra financial burden even with a rate hike. Asked on the appropriate debt-to-income ratio, they said 16.3%.
The prospective home buyers who are willing to take out a mortgage loan said that they want an average mortgage loan of KRW 133.60 million, a KRW 14.78 million increase from a year earlier. Asked about the desired repayment method, 46.7% chose equal principal and interest repayment and 40.5% equal principal repayment.
□ Respondents say that the average desired jeonse deposit is KRW 156.66 million
The survey found that households who wish to rent a house are willing to pay KRW 156.66 million for their jeonse security deposit. The share of those willing to pay more than KRW 200 million for the deposit stands at 31.3%, a 2.7%-point increase from a year earlier. Asked about the preferred size of a rented home, 69.4% of them said they would rent a 85m2 or less home.
In addition, the average loan amount per rented house is found to be KRW 59.27 million, up by KRW 12.36 million from a year earlier.
□ The survey shows a need for more public rental housing units to improve housing stability for low-income
households
Among 1,948 households living with jeonse or monthly rentals, the share of those living in a public rental home only stands at 12.8%. The key reason why they have chosen the public rental unit is‘a low monthly rental (or jeonse) fee’ and‘long-term residential stability.’Furthermore, 82% of them said that they wish to maintain the current jeonse or monthly rental contract, indicating that there is a need to expand the provision of public rental housing units to enhance the residential stability of low-income, non-home-owning households.
【Tenants: Why they have rented a public rental housing unit】
(unit: %)
【Tenants: Whether to maintain the existing tenancy】
(unit: %)
