Is the Gangnam Housing Market a Stopover or the Final Destination?: A Decision on Residential Mobility Among Elderly Homeowners

Abstract

The rising cost of housing in Gangnam has been the main focus of housing policy in Korea. The concentration of local housing demand is attributed to this increase, which is believed to be driven by better educational infrastructure and job accessibility. This suggests that elderly households, who do not require quality education for their grown-up children or accessible jobs due to their retirement, can provide crucial insights into the market—whether Gangnam is a ‘stopover’ during the growing period or the ‘final destination’ for the entire housing career. The in-depth interviews with middle-aged or elderly households who own apartments in Gangnam and have grown-up children reveal that Gangnam housing is the final destination, not a stopover. The primary reason is their high level of residential satisfaction, which is largely attributed to the quality infrastructure. The satisfaction stems from the presence of high-income and highly educated residents in Gangnam. The fact that it is difficult to build affluent neighborhoods in Korea has strengthened their belief in future price appreciation. Additionally, their strong desire to transfer their convenient lifestyle, the perception of higher social standing, and the potential for capital gain to their children is also a significant factor.