First-Time Home Purchases Decline... Mainly Decreased in the Seoul Metropolitan Area and Among the 2030 Generation

First-Time Buyers of Multi-Unit Buildings in February
Drop Below 30,000 for the First Time in 3 Years
Decrease in Seoul Metropolitan Area Share, Increase in Non-Metropolitan Areas
Slower First Real Estate Purchases Among 2030 Generation

According to the Korea Registry Information Plaza on the 6th, the number of first-time homebuyers last month was 27,497, falling below 30,000 for the first time since February 2019. Photo by Moon Honam munonam@

[Asia Economy Reporter Hwang Seoyul] The number of first-time real estate buyers has also turned downward amid a trading freeze in the market. The surge in housing prices and loan regulations have led to a decline in home purchases, especially among the metropolitan area and the 2030 generation. Calls are rising for policies that consider actual homeowners.

According to the Korea Registration Information Plaza on the 6th, the number of applicants for ownership transfer registration (sales) due to the purchase of a first-time collective building (officetel, apartment, townhouse, multi-family housing, etc.) in February was 27,497. This is a decrease of 3,024 people (9.91%) compared to 35,201 in the previous month. It is the first time since February 2019, when the figure was 29,538, that the number has fallen below 30,000. The number of first-time buyers has been steadily decreasing since October last year (39,543).

As real estate prices in the metropolitan area continue to soar, the number of first-time buyers has decreased mainly in the metropolitan area. Last month, the proportion of first-time buyers in the metropolitan area among all collective building buyers was 8.33%, down 1.76 percentage points from the previous month, while in non-metropolitan areas, it increased by 2.1 percentage points to 10.09%.

Source=Supreme Court of the Republic of Korea Registry Information Plaza. Using flourish studio.

The buying momentum of the 2030 generation, which led first-time purchases, also seems to have entered a lull. The proportion of 19- to 39-year-olds, who accounted for 57.78% of first-time purchases in December last year, fell to 55.20% last month. Although this is a slight increase from January (53.36%), it shows that the first real estate purchases are slowing compared to other generations. In particular, the proportion of first-time real estate purchases by the 2030 generation in Seoul last month (52.33%) decreased by 4.99 percentage points compared to January (57.32%).

Experts point to the skyrocketing real estate prices in the metropolitan area as the main cause of the decline in first-time real estate buyers. Professor Baek Seongjun of Hansung University’s Department of Real Estate said, “For salaried workers, the metropolitan real estate prices have risen too much to accept,” adding, “With loan regulations and interest rate hikes combined, there is a risk of becoming house-poor if they borrow to buy, so even those who stretch their finances to the limit seem to be holding back.”

Experts responded that policies for first-time homebuyers should be considered. Photo by Yonhap News

Experts argue that policies for first-time homebuyers should be considered. Presidential candidates Lee Jae-myung of the Democratic Party and Yoon Seok-youl of the People Power Party have proposed real estate policies to raise the LTV to 90% and 80%, respectively, for first-time home purchases. Kim Hakryeol, head of SmartTube Real Estate Research Institute, said, “The reason why actual demanders have housing problems is because of loans,” and added, “Easing loan regulations would help the homeless.”

Meanwhile, Cho Joohyun, honorary professor of the Department of Real Estate at Konkuk University, said, “It is also necessary to realistically assess the ability to repay loans,” and added, “Instead of supporting the entire funds, reducing the burden of interest repayment could be another method.”

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