September 06, 2010 12:00
A person who earns the average income in Seoul needs to save 12 years' worth of their entire income to buy a home.
According to the price-to-income ratio calculated by the Kookmin Bank as of June this year, the average price of mid-range housing in Seoul was W446.46 million, 12.5 times higher than the average income of a mid-level household of W35.68 million (US$1=W1,178).
The PIR represents the purchasing power for housing, and when it is 12.5 times higher than the average income, it means it takes 12.5 years to buy an average home when the entire annual income is saved.
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