Stopped, Seoul Apartment Sales Too... 2030 Panic Buying as Well

February Sales at 394 Lowest... First-Time Buyers Also Below 30,000 for the First Time in 3 Years

[Asia Economy Reporters Kangwook Cho and Seoyul Hwang] In February, a total of 394 apartment transactions were tentatively recorded in Seoul, marking the lowest level since data disclosure began in 2006. Notably, first-time homebuyers fell below 30,000 for the first time in three years, and the 'all-in' buying spree by the 2030 generation, which led last year's purchasing momentum, has also disappeared.

According to the Seoul Real Estate Information Plaza on the 3rd, the tentative number of apartment sales transactions in Seoul last month was 394, about one-tenth of the 3,843 transactions recorded in February last year. Although the transaction reporting period (within 30 days after the transaction) is still ongoing, the market expects that at most 600 to 700 transactions took place.

The transaction cliff phenomenon in the housing market has deepened since the second half of last year. The number of apartment sales in Seoul dropped by more than 3,000 from 5,772 in January last year to 2,203 in October, then halved to 1,364 in November, and further shrank to 1,125 in December. This year, January barely exceeded four digits with 1,080 transactions, marking three consecutive months in the low 1,000s. Real estate sales sentiment has also plummeted. According to the Korea Research Institute for Human Settlements, the consumer sentiment index for the Seoul housing sales market was 105.3 last month, down 2.8 points from 108.1 in December last year. This is the lowest figure in 2 years and 9 months since April 2019 (97.9).

First-time real estate purchases have also turned downward. According to the Korea Registration Information Plaza, the number of ownership transfer registrations (sales) for first-time purchases of collective buildings (officetels, apartments, row houses, multi-family houses, etc.) last month was 25,850. This is a decrease of 4,670 people (15.30%) compared to 30,520 in the previous month. Falling below 30,000 is the first time in three years since February 2019 (29,538). First-time buyers have been steadily decreasing since October last year (39,543). The proportion of first-time buyers in Seoul and the metropolitan area versus other provinces also reversed last month, with provinces taking the lead for the first time in three years.

The 'panic buying' frenzy by the 2030 generation, which led the real estate market last year, has also stopped. According to the Korea Real Estate Board, the share of apartment sales by the 2030 generation in Seoul was 37.5% in January, down more than 4 percentage points from the previous year's average of 41.7%. Additionally, the share of first-time real estate purchases by the 2030 generation has also declined. The proportion of first-time buyers aged 19 to 39, which accounted for 57.78% in December last year, fell to 55.03% last month. In particular, the share of first-time buyers in the 2030 generation in Seoul (52.20%) decreased by 5.12 percentage points compared to January (57.32%).

Experts cite soaring house prices and loan regulations as causes for the decline in home purchases. Professor Seongjun Baek of Hansung University's Department of Real Estate said, "Real estate prices in the metropolitan area have risen too high for salaried workers to accept," adding, "With the interest rate hikes, there is a burden of becoming 'house poor' by borrowing to buy a home, so even those who previously went 'all-in' seem to have become more cautious."

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