Due to the real estate market recession, new enrollments in dwelling pensions increased at the end of last year, while the number of mid-term cancellations decreased.
According to the Korea Housing Finance Corporation housing finance statistics system, new enrollments in dwelling pensions in December last year totaled 1,507, an 18.2% increase from November (1,275 cases).
This is the highest number in nine months since March last year (1,606 cases).
Monthly new enrollments in dwelling pensions peaked at 869 cases in September last year, the lowest since September 2023 (779 cases). They have since shown an upward trend with 1,070 cases in October, 1,275 cases in November, and 1,507 cases in December.
On the other hand, the number of individuals canceling their dwelling pensions has decreased. In December last year, mid-term cancellations for dwelling pensions dropped by 2.5% from November (319 cases) to 311 cases, the lowest since March of the same year (297 cases).
Monthly cancellations of dwelling pensions peaked at 376 cases in July last year, the highest in two years and eight months since November 2021 (407 cases), and steadily decreased until the end of the year.
A dwelling pension is a system that allows homeowners aged 55 and older to provide their dwellings as collateral while receiving monthly retirement funds for life.
During periods of real estate market recession, the demand for new enrollments in dwelling pensions tends to increase, whereas when housing prices rise sharply, there is an inclination to increase cancellations. This is often because individuals find it more economically advantageous to enroll in or maintain their pension during times of stagnating housing prices.
An official from the Housing Finance Corporation noted, "It is difficult to identify specific reasons for cancellations, but it appears to be correlated with fluctuations in housing prices."