10s and 20s Buying Homes with 'Bumo Chance'... Growing 'Real Estate Blue' [Heo Midam's Youth Report]

Increasing Number of 10s and 20s Buying Seoul Apartments Using 'Bumo Chance'
Experts Say "Capital Gains Tax Should Be Lowered to Stabilize Real Estate Market"

A view of a real estate agency in Seoul. The photo is unrelated to specific expressions in the article.

Editor's NoteHow is your youth remembered? From teenagers to college students and office workers, we deliver the joys and sorrows unique to 'youth.'

[Asia Economy Reporter Heo Midam] "You can't buy your own home living as a salaried worker."

The number of young people aged 20 and under buying apartments in Seoul is increasing. Over the past few years, as housing prices have skyrocketed, the perception that "Seoul housing prices are cheapest today" has spread, leading to a wave of 'panic buying' among young people. Young buyers are purchasing apartments by borrowing money or using so-called 'parental chances,' expecting housing prices to rise further.

However, young people who find it difficult to use 'parental chances' express relative deprivation, lamenting, "I didn't realize it would be this hard to own a home." Some are even experiencing 'real estate blues (depression)' due to anxiety caused by soaring housing prices.

According to recent statistics on apartment buyers by age group from the Korea Real Estate Board, among 4,240 apartment transactions in Seoul in June, those aged 20 and under accounted for 5.5% (233 cases). This is the highest figure since the board began publishing these statistics in January 2019.

The proportion of buyers aged 20 and under was highest in Yeongdeungpo-gu (11.6%), exceeding 10%, followed by Jongno-gu (9.7%), Gangnam-gu (8.0%), and Geumcheon-gu (7.8%).

In particular, in Gangnam-gu, where apartment prices are the highest in Seoul, the share of buyers aged 20 and under rose from 1.8% in March to 4.2% in April, 7.2% in May, and 8.0% in June, marking the highest level since statistics began.

A citizen is overlooking the downtown area. The photo is unrelated to specific expressions in the article. [Image source=Yonhap News]

However, considering that the average price of small to medium-sized apartments in Seoul recently exceeded 1 billion KRW, it is practically impossible for those in their teens and twenties without income or substantial assets to purchase apartments in Seoul on their own.

As a result, some young people aged 20 and under are buying apartments with parental support. In particular, some parents have invested using their children's names to expedite their children's 'home ownership.'

According to data on the number of age-specific funding plan submissions by metropolitan city and province, submitted by the Ministry of Land, Infrastructure and Transport to Park Sang-hyuk, a member of the Democratic Party, the number of cases where teenagers purchased housing in Seoul for deposit succession and rental purposes from January to May this year was 69, nearly ten times the 7 cases during the same period last year.

Given this situation, young people without 'parental chances' express frustration. Some pointed out that the 'rich get richer, poor get poorer' structure seems to be worsening.

Jeon Mo (26), an office worker, said, "'Self-made' has long become an outdated phrase. Times have changed drastically from the past. It has become difficult to earn money and buy a home without loans or 'parental chances.' Thinking that I might not own a home even after working as a salaried worker for decades brings a bitter feeling. This reality is very bleak."

College student Jeong Mo (25) also said, "I'm scared even before stepping into society. In my parents' generation, saving salary bit by bit still gave hope for home ownership, but that's not the case now. My current goal is to get a job, but once I get one, I don't know what to aim for. Setting 'owning a home' as a goal has become too unrealistic."

Experts point out the need to lower capital gains tax and other taxes to stabilize housing prices.

Professor Kim Taegi of Dankook University's Department of Economics said, "For the real estate market to stabilize, transactions need to be active. For this, existing homes need to be put on the market. Increasing the supply of new homes takes a long time." He added, "To increase the supply of existing homes, it is necessary to raise property taxes and lower capital gains taxes."

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