'30s All-In Buying' That Even Pre-Subscription Could Not Calm Down

Apartment Sales in Seoul in May for 30s
About 1,870 Cases... Accounting for 37% Share
House Prices Soared in First Half, Jeonse Instability in Second Half
Panic Buying Continues Ahead of Pre-Subscription

Although the pre-sale of the 3rd phase new towns is just around the corner, it appears that the 'all-in' mentality of people in their 30s toward apartment purchases has not been subdued.

According to the monthly buyer age group status from the Korea Real Estate Board on the 30th, the number of apartment sales in Seoul by people in their 30s last month was 1,867, a 30.6% increase compared to 1,430 in April. In terms of transaction share, they accounted for 36.7%, the highest among all age groups. This is the highest figure since January this year. The share of transactions by people in their 30s recorded the highest since the Korea Real Estate Board started publishing age-specific statistics in 2019, with 39.6% in January.

By region, Seongdong-gu (47.9%), Gangseo-gu (46.3%), Jung-gu (46.3%), Seodaemun-gu (43.4%), Jungnang-gu (42.1%), Dongjak-gu (41.8%), Nowon-gu (41.2%), and Yeongdeungpo-gu (40.9%) all exceeded 40%. On the other hand, in the Gangnam 3 districts, which have many high-priced apartments?Gangnam (26.5%), Seocho (26.2%), and Songpa (37.7%)?the purchase share of people in their 30s was all below 40%.

With apartment prices continuing to surge in the first half of this year and a rental crisis predicted in the second half, the buying momentum of real housing demand among people in their 30s shows no signs of calming down. Seo Jin-hyung, president of the Korea Real Estate Society (professor at Gyeongin Women's University), said, "People in their 30s still cannot shake off the perception that it is difficult to buy an apartment if not now, so they are still going all-in."

Originally, the government planned to suppress buying demand through the pre-sale of the 3rd phase new towns, but it seems to have little effect. Pre-sale is a system that supplies apartments early 1 to 2 years before the main sale, guaranteeing 100% occupancy if the winner maintains the status of a non-homeowner until the main sale. From July to the end of the year, pre-sales of 30,200 public sale apartments will be conducted in four rounds in the metropolitan area’s 3rd phase new towns such as Incheon Gyeyang and major housing sites.

Notably, about half of the pre-sale supply this year, 14,000 units, will be supplied as Newlywed Hope Towns. In addition to newlywed couples married within 7 years, non-homeowners with children under 6 years old and single-parent families can also apply. Among these, 30% will be preferentially supplied to newlywed couples married within 2 years or prospective newlyweds. The remaining 16,000 public sale units will also allocate 30% as special supply for newlywed couples. The life-first special supply (25%) selected by lottery is also considered a system favorable to relatively younger generations. Despite complaints and controversies over the 'reverse discrimination' of middle-aged and older generations, the government has rolled up its sleeves for special supply for youth and people in their 30s.

According to the Monthly KB Housing Market Trends report released by KB Kookmin Bank Liv Real Estate on the 27th, the rent prices of houses in Seoul increased by 0.90%, expanding the rise compared to last month (0.62%). In the metropolitan area, the increase widened from 0.71% last month to 1.04% this month. Gyeonggi and Incheon saw rises of 1.07% and 1.34%, respectively. Nationwide, housing rent prices also rose by 0.88%, expanding the increase from last month (0.57%). The photo shows an apartment complex viewed from the Seoul Sky observatory at Lotte World Tower in Songpa-gu, Seoul, on the same day.

However, the continued all-in buying trend even as the pre-sale of the 3rd phase new towns approaches indicates that market expectations for the pre-sale are not high. Professor Seo said, "Considering the overall supply shortage in the metropolitan area, the pre-sale supply itself is not large, and it is still close to a 'lottery sale,' so it is not easy to have high hopes for owning a home." He added, "To fundamentally calm the buying frenzy, a sentiment that real estate prices will stabilize in the future must be formed. Only by clearly signaling that supply will expand through a two-track supply strategy involving both public and private sectors will the panic buying by people in their 30s subside."

In fact, people in their 30s are clinging even more to the 'lottery sale.' It was confirmed that more than 17,000 people in their 20s and 30s participated in the recent application for Banpo One Bailey in Seocho-gu, Seoul.

According to the 'Banpo Raemian One Bailey general supply application and winner status by household' data received by Kim Sang-hoon, a member of the People Power Party, from the Korea Real Estate Board, a total of 17,323 people in their 20s and 30s applied for 224 general supply units. In particular, 14,952 people in their 30s applied, the highest number among all age groups. Only one winner each was selected for the 59㎡A and 59㎡B housing types.

Rep. Kim pointed out, "The fact that support is concentrated like this among the youth generation despite low points shows one aspect of the youth housing problem, where it is difficult to own a home without resorting to means like going all-in or lottery applications."

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