Proceeds from stocks, bonds and cryptocurrencies made up a larger share of Seoul home purchase funding in January through May, while gifts, inheritances and real estate sales also gained ground despite tighter lending curbs.
Seoul's housing market is seeing more asset switching, with buyers selling financial holdings and existing property to fund home purchases even as the government maintains tough lending curbs. Maeil Business Newspaper reported that proceeds from stocks, bonds and cryptocurrencies accounted for 7.6% of home purchase funds used by individual buyers in Seoul from January through May, up from 2.9% in 2021. An analysis by South Korea's Ministry of Land, Infrastructure and Transport, based on home purchase financing plans submitted to the office of People Power Party lawmaker Kim Jong-yang across 17 cities and provinces, also showed funds from gifts and inheritances rose to 6.4% from 3.8%, while proceeds from real estate sales made up 32.6%. Loans from financial institutions accounted for 22.7%, little changed in recent years, suggesting buyers are increasingly relying on asset reallocation rather than additional borrowing.