“Let’s buy it first”… 2030 Highest number of apartment purchases on record

An apartment building in Seoul. [뉴시스]

As the apartment market’s anxiety and expectations that house prices will rise steadily increased, the purchases of apartments in Seoul by the 2030s reached an all-time high.

According to the Korea Real Estate Agency’s statistics on apartment sales by age group on the 31st, the number of apartment sales in Seoul in April (as of the reporting date) was 1,624, of which 687 (42.3%) were purchased under the age of 30. Both the number and proportion of apartment purchases in Seoul under the age of 30 set new highs and highs this year.

The proportion of people in their 30s or younger buying apartments in Seoul exceeded 40% for the first time since 2019, when related statistics began to be compiled in August 2020, during a period of a surge in house prices. After that, the monthly rate exceeded 40% until October of last year, excluding November of the same year (39.3%) and April of the following year (39.3%).

However, from September last year (44.1%) to February of this year (36.0%), the proportion of purchases in their 30s and younger fell every month after the financial sector’s loan regulations were tightened in earnest and interest rates began to rise.

The proportion of apartment purchases in Seoul under the age of 30 increased by 4.7 percentage points (p) in March (40.7%) compared to February (36.0%) and rose again to the 40% level, followed by a further increase in last month (42.3%). .

However, some predict that it will be difficult for the 2030 generation’s aggressive purchase demand to continue as before, given the continued high-strength loan regulations and interest rate hikes.

The total number of apartment purchases in Seoul increased by 31.4% in April (1624) compared to March (1236), but the transaction cliff has continued to fall below 2,000 per month for the fifth month since December of last year.

Experts explain that the background of the 2030 generation’s aggressive purchase is the mixed effect of the expectation of a house price increase through the implementation of a real estate-friendly pledge after the presidential election and the anxiety of buying quickly before it rises further.

Ham Young-jin, head of Big Data Lab, said, “It seems that the proportion of young people buying apartments in real demand has increased due to loan regulations, pressure to raise interest rates, and uncertainty in the rental market. “I think that the 2030 generation’s judgment that it is better to prepare and pay interest on a loan to a bank has also had an impact,” he said.

By Kim Dong-hyun, staff reporter gaed@fortunekorea.co.kr

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.