Seoul Homebuyers Fund Purchases with 7.6% Asset Sales Amid Tighter Lending

Seoul buyers increasingly liquidate stocks and crypto to fund homes as lending curbs bite, with asset sales rising from 2.9% to 7.6% in Jan-May, signaling robust demand despite credit tightening.

Woofun AI data shows that Seoul homebuyers are increasingly liquidating financial assets, including stocks and cryptocurrencies, to finance new real estate acquisitions amid stricter government lending regulations. An analysis of financing plans submitted to People Power Party lawmaker Kim Jong-yang reveals that proceeds from stock, bond, and crypto sales accounted for 7.6% of individual home purchase funds in Seoul from January through May, a sharp increase from 2.9% in 2021. Funds from gifts and inheritances also rose to 6.4% from 3.8% over the same period.

Proceeds from real estate sales remain the largest funding source at 32.6%, while loans from financial institutions constitute 22.7%, a share that has remained relatively stable.

This shift indicates that despite aggressive policy tightening, housing demand remains resilient as buyers bridge financing gaps by shifting investment portfolios. The data suggests that credit tightening alone may not dampen demand, potentially undermining the effectiveness of loan-to-value and debt-service-ratio regulations.