Increase in Seoul Apartment Owners in Their 10s and 20s... Accelerating Wealth Inheritance

Seoul 20s Apartment Purchase Share 5.5%
Increase in Young Buyers Getting Parental Help for Homeownership
Apartment Prices Soar... Accelerating Wealth Inheritance

[Image source=Yonhap News]

The proportion of apartment purchases by young people aged 20 and under in Seoul has set a record high for two consecutive months. Since it is difficult even for relatively high-income people in their 20s to buy apartments in Seoul through bank loans, there is an analysis that the 'inheritance of wealth' through parental assistance in buying homes is accelerating.

According to the status of apartment buyers by age group from the Korea Real Estate Board on the 7th, among 4,240 apartment transactions in Seoul in June, the purchase proportion of those aged 20 and under was 5.5% (233 cases). This is the highest figure since the Real Estate Board began publishing the statistics in January 2019.

The proportion of apartment purchases by those aged 20 and under in Seoul is gradually increasing. After first exceeding 5% at 5.1% in October last year, it slowed down to 4.2% in February this year, but it set a record high of 5.4% in May and then broke the record again in June just one month later, increasing the rise for two consecutive months.

Apartment purchases by those aged 20 and under were highest in Yeongdeungpo-gu (11.6%), Jongno-gu (9.7%), Gangnam-gu (8.0%), Geumcheon-gu (7.8%), Seodaemun-gu (7.5%), Dobong-gu (7.4%), Guro and Jungnang-gu (7.1%), Seocho-gu (6.5%), Nowon-gu (6.1%), Gwanak-gu (6.6%), and Gangdong-gu (5.5%), in that order.

It was found that purchases by those in their 20s are active even in high-priced apartment-dense areas such as Gangnam, not just in relatively affordable Nowon and Gwanak-gu. Therefore, the industry analyzes that the proportion of people in their 20s buying apartments with parental help is rapidly increasing.

According to a survey by KB Kookmin Bank, the average price of small to medium-sized apartments in Seoul has already exceeded 1 billion won, making it practically difficult for people in their 20s to obtain loans and purchase apartments solely based on their own income.

Although the government continues to implement supply expansion policies such as pre-sale subscriptions, the recent sharp rise in sales and jeonse prices in Seoul and the metropolitan area is interpreted as increasing the demand among young people for 'owning a home.' Apartment prices in Seoul rose by 0.20% this week, marking the largest increase since the third week of December 2019.

In June, apartment gifts in Seoul reached 1,698 cases, increasing by 1.3 times compared to the previous month, indicating that the inheritance of wealth is also accelerating. It is reported that gifts in areas with high-priced complexes such as Gangnam-gu and Songpa-gu have particularly increased significantly.

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