Gangnam relies on loans for about 20% of home purchases, versus more than 50% in Seoul’s less affluent districts

Homebuyers in Seoul are relying less on loans, but the city’s property market is increasingly divided by financial strength. In wealthy Gangnam, borrowed funds account for roughly one-fifth of transaction values, while the figure exceeds half in the city’s less affluent districts.

Data from the court’s Registry Information Plaza showed that the ratio of the maximum registered mortgage claim to the transaction value of Seoul collective housing fell to 40.42% last month. The category includes apartments, officetels and villas, and the figure marked the lowest level in the available statistics.

The maximum claim is the largest amount a financial institution registers to recover a loan. It is typically set at around 120% of the actual loan. A lower ratio therefore indicates less reliance on bank borrowing when purchasing a home.

Regional differences were especially clear. The ratio remained around 20% in Seoul’s three Gangnam districts, where expensive homes are concentrated. Gangnam District recorded the lowest figure at 19.69%, followed by Seocho at 20.29% and Songpa at 23.57%. The source says the ratio in Nowon, Dobong and Gangbuk stood in the 50% range.