Highest share in four years as buyers rush ahead of October 15 real estate measures
It was found that those in their 30s purchased nearly 40% of apartments in Seoul in September, just before the announcement of the October 15 real estate measures. The purchase share of those in their 30s reached the highest level in four years. Market analysis suggests that individuals in their 30s, who are more likely to be first-time homebuyers or those without existing property and thus less affected by the June 27 loan regulations, may have rushed to purchase properties through “yeongkkul” (pulling out all resources, even one’s soul, to invest).
According to statistics on apartment purchase transactions by age group released by the Korea Real Estate Board on the 9th, those in their 30s accounted for 36.7% of the 6,796 apartment purchase transactions reported in Seoul last September. This marks the highest share since September 2021 (38.85%), the first time in four years.
For those in their 40s, who have consistently surpassed a 30% purchase share since last year and are classified as a major buyer group, the share remained below 30% for two consecutive months, recording 27.4% in September following 26.8% in August.
The increase in apartment purchases by those in their 30s is attributed to their eligibility for low-interest policy funds, such as first-time homebuyer loans or newborn special loans. After the June 27 loan regulations limited the loan cap in the capital region to 600 million Korean won and required existing homeowners to sell their properties within a set period when purchasing new homes via loans, the borrowing capacity of other age groups significantly decreased.
Additionally, as Seoul apartment prices continued to rise even after the loan regulations, there is analysis that “panic buying” or “yeongkkul demand” among those in their 30s, who rushed to buy homes before it was too late, increased.
By district, Gangseo-gu showed the strongest purchasing activity by those in their 30s, with a share of 48.0%. This was followed by Gwanak-gu (46.1%), Seongdong-gu (45.5%), Eunpyeong-gu (43.0%), Yeongdeungpo-gu (42.8%), Seodaemun-gu (41.7%), Seongbuk-gu (41.3%), Dongdaemun-gu (41.0%), Guro-gu (40.3%), and Jung-gu (40.0%).
However, in traditionally regulated areas such as Gangnam-gu (24.2%), Seocho-gu (25.0%), Songpa-gu (30.0%), and Yongsan-gu (23.5%), where high-priced apartments are concentrated, the purchase share of those in their 30s was relatively low.
The market forecasts that the purchase share of those in their 30s may continue to rise. With the October 15 measures designating regulated areas and land transaction permit zones across Seoul and parts of the capital region, the purchasing power of those in their 30s, who can utilize policy funds, is expected to strengthen. In regulated areas, the Loan-to-Value (LTV) ratio remains up to 70% for first-time homebuyers within the 600 million Korean won limit.
