Funds from Stock Sales Used to Buy Homes in Dongtan Surge Ninefold in One Year... Stock Market Gains Flow Even More to 'Prime Residences'

The More High-Priced Homes in Southern Seoul, the Greater the Use of Investment Assets

Funds Flow Into Residential Apartments While Demand for Commercial Real Estate Disappears

In Dongtan District, Hwaseong, Gyeonggi Province, the amount of funds raised by selling stocks and cryptocurrencies to purchase residential properties reached 153.8 billion won from January to May this year, marking an 8.7-fold increase compared to the same period last year (17.6 billion won). During the same period, the total amount of residential purchase funds in Dongtan District roughly tripled, but the funds raised through the liquidation of financial assets grew at a much faster pace.

Although Dongtan is not designated as a land transaction permit zone, buyers are still required to submit a fund sourcing plan when purchasing a house worth 600 million won or more, even in non-regulated areas. The proportion of financial investment assets such as stocks being used to fund home purchases has increased sharply in Gyeonggi Province, including Dongtan. Meanwhile, as more financial assets are being funneled into apartments, the trend of neglecting commercial real estate—which has traditionally been the investment destination for high-net-worth individuals—has become increasingly pronounced.

According to the “fund sourcing plans” submitted to the Ministry of Land, Infrastructure and Transport and obtained by Assemblyman Lee Jongwook of the People Power Party on June 29, the total amount of “proceeds from the sale of stocks, bonds, and cryptocurrencies” used to purchase homes in Seoul and Gyeonggi Province from January to May this year was tallied at 4.9671 trillion won. This is a 192% increase, nearly three times higher than the 1.7022 trillion won recorded during the same period last year. Overall residential purchase funds increased by 26%, from 63.4747 trillion won to 80.1297 trillion won. The growth rate of funds raised from the sale of investment assets such as stocks and cryptocurrencies was more than seven times higher than the overall increase in residential transaction funds. The share of this category in total home purchase funding rose from 2.7% last year to 6.2% this year, more than doubling.

The pace of increase in investment asset sales used for residential purchases was even faster in Gyeonggi Province than in Seoul. In Seoul, 3.5518 trillion won was raised through the sale of stocks and bonds to buy real estate, a 2.5-fold increase from 1.3832 trillion won during the same period last year. In Gyeonggi Province, the figure reached 1.4153 trillion won, representing a 4.4-fold jump from 319 billion won a year ago.

The proportion of these funds in total residential purchase capital also increased. In Seoul, the share of investment asset sales in the total residential purchase funds of 47.9116 trillion won jumped from 3.1% during the same period last year to 7.4%. In Gyeonggi Province, the share was 4.4% of the total 32.2181 trillion won, up 2.5 times from 1.7% a year earlier.

The higher the concentration of expensive homes in an area, the greater the proportion of investment asset sales used for purchases. In Seocho District, for example, 15% of home purchase funds from January to May this year came from the sale of stocks and coins—more than triple the 4.7% recorded in the same period last year. Other districts with high proportions included Yongsan District (13.9%), Gangnam District (13.3%), and Songpa District (10.5%). Conversely, districts such as Nowon (2.7%), Dobong (2.9%), and Guro (2.9%) remained around the 3% mark. This shows that funds from the sale of financial assets are being used more heavily to purchase high-priced homes in areas like Gangnam and Yongsan within Seoul.

This data was compiled based on individual purchase transactions for which fund sourcing and occupancy plans were submitted in Seoul and Gyeonggi Province. It includes single-family homes, multi-family residences, row houses, and apartments, but excludes initial supply contracts and rights to purchase.

With stock market gains being funneled into home purchases in the Gangnam area, some analysts point out that commercial real estate, once a preferred investment option for high-net-worth individuals, is now seeing relatively little inflow of funds. The head of a global commercial real estate consulting firm stated, “Money made from stocks or coins is flowing into residential properties such as apartments, but rarely shifts into commercial real estate like small buildings. Unlike the housing market, where sellers set the price, the commercial property market has become a buyer’s market, as it is increasingly difficult to find buyers.” As funds, restricted by housing regulations and loan limits, are concentrated on a “single solid property,” the commercial real estate market has virtually lost its buying momentum.

This content was produced with the assistance of AI translation services.