It has been projected that Generation X and Millennials worldwide, who have wealthy parents, will inherit an astronomical amount of real estate assets over the next decade.

It is projected that Generation X and Millennials worldwide with wealthy parents will inherit real estate assets worth 6,000 trillion won over the next decade. Pixabay

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On January 16 (local time), the U.S. daily The Wall Street Journal (WSJ) reported, citing a report by real estate brokerage Coldwell Banker Global Luxury, that approximately 1.2 million individuals with a net worth of at least $5 million (about 7.4 billion won) are expected to pass on more than $38 trillion (about 56,069 trillion won) in assets to their children over the next ten years.

The proportion of real estate among these assets is particularly significant. According to the report, Generation X and Millennials are estimated to inherit $2.4 trillion (about 3,539 trillion won) worth of homes and land in the United States alone, and a total of $4.6 trillion (about 6,787 trillion won) in real estate globally.

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WSJ analyzed, "Baby Boomers and previous generations have accumulated an unprecedented amount of wealth over several decades," adding, "Now, as this wealth is transferred to the next generation, it is having a considerable impact on the luxury real estate market."

As this transfer of assets accelerates, wealthy individuals are increasingly involving their children in inheritance discussions at an earlier stage.

WSJ also reported that, especially among the wealthiest, it is becoming more common for parents to proactively purchase luxury real estate for their children even before the formal inheritance process begins.

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In fact, in Manhattan, New York, family funds are playing an increasingly prominent role in major real estate transactions.

Ian Slater, an agent at real estate brokerage Compass, stated, "In the past, it was common for parents to gift their 25- to 30-year-old children apartments worth $3 million to $5 million (about 4.4 billion to 7.4 billion won), but recently, some parents are purchasing properties in the $15 million to $30 million (about 22.1 billion to 44.2 billion won) range for their children."

On the other hand, large mansions are becoming burdensome for the younger generation, leading to an influx of such properties on the market. WSJ explained that this is because large family homes, which require significant staffing and maintenance costs, are seen as a burden by heirs.