30s Driven to 'Panic Buying' Also Led in Gap Investments

Kim Sang-hoon, member of the People Power Party. [Photo by Yonhap News]

[Asia Economy Reporter Lee Chun-hee] Among those who purchased homes through gap investment in the Seoul metropolitan area, the proportion of people in their 30s was the highest at 30%.

According to the 'Housing Transaction Status by Age Group in the Seoul Metropolitan Area' submitted by the Ministry of Land, Infrastructure and Transport to Kim Sang-hoon, a member of the National Assembly Land, Infrastructure and Transport Committee from the People Power Party, among 71,564 gap investment cases in Seoul from last year until last month, 21,996 cases (30.7%) involved people in their 30s. This is the highest proportion among all age groups. People in their 20s accounted for 3,939 cases, or 5.5%, making the total proportion of those in their 20s and 30s 36.2%. Assemblyman Kim classified transactions where the deposit was succeeded according to the funding plan as gap investments if the purchase was for rental purposes.

Among the autonomous districts in Seoul, Seongdong-gu had the highest proportion of gap investments by people in their 30s at 39.6% (1,175 cases). It was followed by Gangseo-gu (35.4%), Jung-gu (35.2%), Dongjak-gu (34.7%), and Guro-gu (34.1%). Outside Seoul, in the metropolitan area, many regions such as Seongnam-si (36.2%), Anyang-si (35.2%), Gwacheon-si (33.3%), and Guri-si (32.2%) in Gyeonggi Province also showed the highest proportions of gap investments by people in their 30s.

Assemblyman Kim analyzed that within Seoul, "there were many areas where newlyweds or young workers could still purchase homes for actual residence," and "across the entire metropolitan area beyond Seoul, gap investments by the younger generation who 'rent first and buy later' to secure their own homes have occurred."

Meanwhile, even after the government implemented loan regulations to block gap investments through the June 17 real estate measures, the proportion of gap investments by people in their 30s continued to increase. The proportion of gap investments by those in their 30s was 31.0% in May, rose to 32.9% in June, briefly dipped to 31.9% in July, and then increased to 37.6% last month. However, the survey for last month excludes transactions without submitted funding plans as the submission deadline had not yet passed.

Assemblyman Kim Sang-hoon stated, "The current government did not distinguish between actual demand and speculation, treating gap investment itself as a source of market disruption," and added, "Indiscriminate regulation of gap investments could backfire by removing the ladder for homeownership for the younger generation in their 20s and 30s, so policies reflecting voices from the field are necessary."

This content was produced with the assistance of AI translation services.