top 1% threshold Reaches 3 Billion Won

The threshold to⁤ be⁢ in the top 1% of real estate asset holders in South Korea reached 3 billion won last year, an increase of more than 500 million won in five ‍years. Regional disparities are increasingly apparent, with metropolitan real estate values growing at a faster‍ pace than those in non-capital areas.

According ‍to⁢ an⁣ analysis of‍ the ⁣Household Finance Welfare⁣ Survey, the baseline for households in the⁢ top 1% of real estate assets was 3 billion won last year. This⁣ figure‍ is calculated by ranking households by real estate ⁢assets and identifying the value held by the top 1%, weighted by household size. This means ‍that as of last⁣ year, one needed to possess at least 3 billion won in real estate to be considered⁢ among the wealthiest 1%.

Significant Increase in Top ⁤Tier Real Estate Value

Compared to 2019, when the baseline⁤ for the top 1%⁤ was⁤ 2.46 billion ⁣won, ⁢there ‍has been an increase of 540 million won over five years.⁣ Similarly, the baseline for the top 5% rose by 290 million won, from 1.12 billion won⁤ in 2019 to 1.41 billion won last year. The top 10% also ⁢saw ⁣an increase, rising from 750 million won to 950 million won.

Modest Gains⁢ for Middle-Income Households

In contrast, real estate assets for middle-income households saw a more modest increase, rising⁣ by only 20 million won from 160 million won in 2019 to 180 million won in 2021. This suggests that ‍asset polarization intensified during the real ⁢estate boom⁤ and‍ subsequent‍ market correction of 2020-2022.

Net⁤ asset Disparities Widen

this growing real ⁢estate polarization has contributed to a⁣ “net asset tendency,” where the⁢ average net assets of‍ the wealthiest 10% increased by 470⁢ million won, ⁤from 1.53 billion ⁤won in ‍2019 ‍to 2 billion won last year. The market‍ share of this top 10% also increased from 43.3% to 44.4% of total net assets.During the same period, net ⁢assets for the next tier also increased, from 640 million won to 840 million won, with ⁢their market share rising from ⁤18.2% to ‍18.6%.

Conversely,the net assets of most households in the second ⁣to eighth⁣ deciles decreased from ⁣2019 to last ⁤year.

Regional Divide Persists

The gap between the metropolitan area and non-capital regions continues to widen. This regional polarization is also evident in the ⁢average real estate assets of the top 20%. Last year, the average real estate holdings for households in the top 20% were estimated at 1.3644⁣ billion ⁢won⁤ in the metropolitan area and⁣ 1.07211 billion won in non-capital regions, a difference of approximately 300 million won.

the average real estate ⁤value for the top 20% in the metropolitan area increased by 316.7 million won from 1.0477 billion won in 2019 to 1.3644 billion won last year. during the same period, the top⁤ 20% in non-capital regions increased by 297.6 million won from 774.51 million won to 1.07211 billion won. The average increase in real estate value in the metropolitan area⁤ is significantly higher.

This disparity is attributed to soaring housing prices in⁣ Seoul,where education,business,and transportation infrastructure are concentrated.

Regional Asset Averages

In terms of total ⁢assets, regions with averages higher than the national average of 542.2 million won were Sejong (766.63⁣ million won),Seoul ‍(766.33 million won), and Gyeonggi (659.45 million won). Daegu and ‍Gyeongbuk had averages of 439.97 million won and 387.37 million won, respectively.