[Graphic News] Incomes catching up with house prices

Korea’s ratio of house prices to income last year was 23.4 percent of the ratio in 1986, indicating that it has become easier for people to buy homes.

But the figure for Seoul’s affluent Gangnam area did not fall by as much, reflecting the polarization in the city’s real estate market.

According to the Bank of Korea and KB Kookmin Bank on Tuesday, the general price-to-income ratio last year was 23.4, with the baseline figure of 100 based on the equivalent ratio in 1986.

Also, Korea’s long-term PIR has declined consistently over the years, recording one of the fastest falling rates among OECD countries, along with neighboring Japan, according to the International Monetary Fund.

But the regional PIR for apartments in Seoul’s top 11 districts, all of them located south of the Hangang River, was 47.5 percent, meaning houses there have remained relatively expensive.