Seoul Median-Income Households Find Apartments Out of Reach Despite 6.8 Million Won Pay

Seoul apartments are moving further beyond the reach of median-income households. A household earning around 6.8 million won a month, or about 81.6 million won a year, may look financially stable on paper, but that income is increasingly insufficient in the capital’s housing market.

Income Alone Is Not Enough

Apartment prices in Seoul have risen faster than the purchasing power of ordinary wage-earning households. Buyers cannot borrow the full purchase price, and monthly repayment capacity also matters. As a result, the number of apartments that a median-income household can realistically buy with a mortgage has sharply narrowed.

The 70% LTV Limit Still Requires Large Cash

A 70% LTV means a 1 billion won apartment could be financed with up to 700 million won in loans, leaving at least 300 million won in cash before taxes and transaction costs. For a 1.2 billion won unit, the required cash rises to at least 360 million won. That equals about 4.4 years of gross income for a household earning 81.6 million won annually. Once acquisition tax, brokerage fees, moving costs and interest payments are included, the real pool of affordable homes becomes smaller.

Cash-Rich Buyers Gain the Advantage

Tighter lending rules favor buyers who already hold significant cash. Households with stable income but limited savings face fewer choices in preferred Seoul districts, while cash-heavy buyers are less exposed to borrowing limits. Unless upfront cash burdens ease, median-income households are likely to keep looking beyond core Seoul areas or postpone purchases.