First-time homebuyers in their 30s make up nearly half of Seoul's market

A significant portion of first-time homebuyers in Seoul, nearly half, are in their 30s, marking a record high as they scramble to secure property ownership. This trend is driven by a combination of escalating housing and rental prices, coupled with a scarcity of rental units, compelling many to transition from renters to buyers. The demand is particularly strong in Seoul's outer districts, such as Nowon, Dobong, Gangbuk (NoDoGang), and Geumcheon, Gwanak, Guro (GeumGwanGu), areas known for more affordable housing options. The article highlights that the average price of apartments in the 14 districts north of the Han River in Seoul surpassed 1.1 billion won for the first time in March. This surge is attributed to the increasing difficulty of purchasing new apartments due to high prices and fierce competition in the subscription process. Consequently, younger buyers are shifting their focus to existing homes. The instability in the rental market, with rising rents and fewer available properties, further incentivizes this shift. Data from the Supreme Court's registry information shows that first-time homebuyers accounted for 45.6% of all apartment, villa, and officetel sales in Seoul from January to May this year, the highest proportion since statistics began in 2010. This figure has steadily increased from 36.5% in the same period last year and 38.0% in 2023. The government's easing of loan regulations for first-time buyers, allowing them to utilize policy funds with more favorable loan-to-value ratios, is seen as a key factor. Additionally, a policy allowing non-homeowners to purchase homes with existing leases in designated land transaction permit zones, implemented before the end of the capital gains tax deferral for multiple homeowners, has also contributed. Buyers in their 30s now constitute over 56% of first-time homebuyers, surpassing 50% for the first time. This increased demand has led to record-high sales prices in some apartment complexes, with significant price increases noted over the past year.