Apartment complexes seen from the observation deck of Lotte World Tower in Songpa-gu, Seoul. Not directly related to the article. News1
First-time home purchases of multi-unit buildings in Seoul reached their highest level in 32 months in the past month, the most since November 2021. Eased mortgage rules for first-time buyers, combined with a tight jeonse rental market, drove buyers in their 20s and 30s into the market.
Buyers in Their 20s and 30s Lead the Push
According to an analysis of Supreme Court registry data released on the 18th by real estate information provider Zigbang, first-time purchases of multi-unit buildings in Seoul totaled 7,547 last month. That was up 4.7% from 7,210 the previous month and the highest since November 2021, when purchases reached 7,886 — a 32-month high.
By age group, the concentration among people in their 20s and 30s was clear. Purchases by buyers in their 20s rose to 887 from 765 the previous month, while those in their 30s increased to 4,300 from 3,979. Their shares of the total also climbed — to 11.8% from 10.6% for those in their 20s, and to 57.0% from 55.2% for those in their 30s. By contrast, purchases by buyers in their 50s fell to 571 from 654, and those in their 60s dropped to 274 from 321.
Analysts attribute the shift to eased lending standards for first-time home buyers, along with a persistent shortage of jeonse listings that pushed prospective renters toward buying.
Buying Concentrated in Eunpyeong District
By area, the concentration in Eunpyeong District was the largest. It accounted for 841 purchases, or 11.1% of Seoul’s total. Its share, which had hovered in the 5% to 6% range early in the year, jumped roughly 1.9-fold in two months. Analysts say the district’s access to downtown via subway lines 3 and 6, its large redevelopment apartment complexes and its relatively low entry prices drew buyers in their 20s and 30s.
Prices also rose. The share of transactions at record-high prices climbed for four straight months, to 18.1% in April, 21.1% in May, 24.5% in June and 28.7% in July. Large complexes near subway stations built within about the past five years led the price gains, including Baengnyeonsan Hae Moru in Eungam-dong, Nokbeonyeok e-Pyeonhansesang Castle in Nokbeon-dong, and DMC SK View I-Park Fore, DMC Lotte Castle The First and DMC Central Xi (Complex 2) in the DMC New Town area of Susaek-dong and Jeungsan-dong.
Besides Eunpyeong, other districts ranking high included Nowon (607 purchases, 8.0%), Gangseo (526, 7.0%), Songpa (458, 6.1%), and Seongbuk and Guro (413 each, 5.5%). Nowon, Gangseo, Seongbuk and Guro were dominated by mid- to low-priced deals under 1 billion won, but in Songpa, transactions in the 2.5 billion to 4 billion won range made up 30.3%. The data showed owner-occupier buying spread widely regardless of price level.
The government announced a “rapid housing supply plan” that includes an additional supply of 230,000-plus homes in the greater Seoul area, alongside a “comprehensive financial plan for stabilizing the property market” that tightens management of jeonse loans while supporting owner-occupier buyers.
While the measures emphasized expanding housing supply and supporting young owner-occupier buyers, the supply effect will take time to materialize. Attention is focused on how the detailed implementation plans and changing lending conditions will affect transactions in areas where owner-occupier demand is concentrated.