Major Apartment Buyers Are in Their 30s... Account for 26.5% of Nationwide Purchases

30,000+ Purchases by People in Their 30s from January to April This Year
Highest Number Recorded Since 2019 Survey
Increasing Share of 30s Buyers in Seoul Area

This year, the demand for apartment purchases among people in their 30s has been heating up intensely. Among apartments traded nationwide, the purchase share of those in their 30s is recording the highest figure since the survey began in 2019, ranking at the top across all age groups. This is interpreted as a result of attracting demand from 30-somethings without homes due to the introduction of first-time homebuyer loans and special BoGeumJaRi loans.

This year, the demand for apartment purchases among people in their 30s has been heating up intensely. The photo shows an apartment complex in the city as seen from Namsan, Seoul.
[Image source=Yonhap News]

According to the transaction status by age group of apartment buyers compiled by the Korea Real Estate Board on the 1st, the total number of apartment transaction reports nationwide from January to April this year was 123,069, of which those in their 30s accounted for 26.5% (32,692 cases). This is the highest ever for the January-April period since the related survey began in 2019. The shares were 23.0% in 2019, 23.2% in 2020, 25.1% in 2021, and 23.0% in 2022, respectively.

This year is also the first time that the share of apartment buyers in their 30s was the highest by age group. Until now, the top spot always belonged to those in their 40s. Based on the January-April period each year, the share of buyers in their 40s was 28.2% in 2019, 27.7% in 2020, 25.9% in 2021, and 24.3% in 2022, all higher than that of those in their 30s. However, this year it recorded 25.6%, trailing the 30s by 0.9%.

The gap between the purchase shares of those in their 30s and 40s in Seoul was even wider than the national average. From January to April this year, the share of apartment purchases by people in their 30s in Seoul was 32.2% (3,111 out of 9,662 cases), while those in their 40s accounted for 27.2% (3,111 cases). In particular, the share of apartment purchases by people in their 30s in Seoul is soaring rapidly. It rose sharply from 26.3% (305 out of 1,161 cases) in January, 30.6% (699 out of 2,286 cases) in February, 32.7% (1,059 out of 3,234 cases) in March, to 35.2% (874 out of 2,981 cases) in April.

The increase in the purchase share of those in their 30s appears to be influenced by stable interest rates and the introduction of first-time homebuyer loans and special BoGeumJaRi loans. The loan interest rates at commercial banks, which had been around 5%, dropped to the high 3% to 4% range this year. Additionally, the loan-to-value ratio (LTV) for first-time homebuyers increased to 80%. Furthermore, the special BoGeumJaRi loan, offered from the end of January to both non-homeowners and one-home owners, is also analyzed as a cause for the increased share of 30-somethings making their first home purchase.

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