Seoul's Apartment Purchase Share by Under 20s Hits All-Time High

May Home Purchase Share by Under-20s in Seoul Apartments at 5.4%
'Younggeul' and 'Parent Chance' for Buying First Home

[Asia Economy Reporter Ryu Tae-min] The proportion of buyers aged 20 and under purchasing apartments in Seoul has reached the highest level since related statistics began to be compiled.

According to the age group statistics of apartment buyers from the Korea Real Estate Board on the 1st, out of 5,090 apartment sales in Seoul in May, 277 transactions were made by buyers aged 20 and under, accounting for 5.4% of the total. This is the highest figure since the related statistics started being compiled in January 2019.

The proportion of apartment purchases by those aged 20 and under in Seoul, which had maintained a range of 2-3% since 2019, first exceeded 5% in October last year with 5.1%. It rose further to 5.3% in December of the same year. By district, Jongno-gu recorded the highest at 11.1%, followed by Nowon-gu (9.2%), Dobong-gu (8.9%), Guro-gu (7.8%), and Jung-gu (7.5%).

In the Gangnam 3 districts including Gangnam, Seocho, and Songpa, the proportion of buyers in their 20s also increased. It sharply rose from 2.7% in January to 3.1% in February, 3.2% in March, 4.5% in April, and 5.8% in May, marking an all-time high.

Seo Jin-hyung, President of the Korea Real Estate Society (Professor at Gyeongin Women's University), said, "As house prices are expected to rise in the second half of the year and the need to own a home grows, more young people are purchasing apartments by receiving partial gifts from their parents." He added, "Due to the recent jeonse (long-term lease) crisis increasing the burden of renting and the lowered entry barriers for gap investment, even those in their 20s with relatively weaker financial power are buying apartments."

The recent skyrocketing house prices have also been cited as a major reason for the increased interest in asset accumulation among young people. Song Seung-hyun, CEO of Urban and Economy, explained, "A few years ago, young people were more interested in leisure activities like 'Yolo,' but now they have started to focus on asset accumulation due to the real estate boom." He added, "Since it is difficult to win housing subscription due to low points, it seems they have flocked to the sales market even by 'Youngkkeun' (borrowing to the limit)."

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