"I Need to Buy My Child a Home"... Asset Gifting Trends Shift in Seoul

Last Month, 49% of Property Donors in Seoul Were in Their 50s and 60s
Impact of Housing Price Burden, Loan Restrictions, and Tighter Regulations
Property Gifting in Non-Metropolitan Areas Still Centered on Those in Their 70s and Older

In Seoul, the timing of asset gifting, which had previously been concentrated among those in their 70s and older, is gradually shifting earlier to people in their 50s and 60s. This trend is interpreted as a response to tightened lending regulations and soaring housing prices, which have made it more difficult for the younger generation to purchase homes, prompting the older generation to transfer assets at an earlier stage.

Apartment complex viewed from Namsan Observatory in Seoul. Photo by Yonhap News

According to an analysis released on March 16 by real estate platform Zigbang, which examined property ownership transfer registration statistics from the Supreme Court Registration Information Plaza, the number of people in Seoul who gifted real estate in February was 1,773, an increase of 9.1% compared to January’s 1,624.

By age group, those in their 70s and older accounted for 43.0%, followed by those in their 60s at 32.8%, those in their 50s at 16.2%, and those in their 40s at 3.6%. While the largest proportion was still among those in their 70s and older, there was a noticeable increase in gifting activity among those in their 50s and 60s.

Specifically, the proportion of those in their 70s and older decreased by 6.3 percentage points from 49.3% in January to 43.0% in February, while the share for those in their 50s and 60s rose by 2.8 and 4.0 percentage points, respectively, during the same period. Notably, the combined proportion of those in their 50s and 60s reached 49.0%, surpassing the share of those in their 70s and older.

In January, just one month earlier, the combined proportion of those in their 50s and 60s was 42.2%, lower than the 49.3% for those in their 70s and older. However, as participation from the 50s and 60s age groups increased, the timing of asset gifting has shifted somewhat earlier.

This trend is more pronounced in the Seoul metropolitan area. In Gyeonggi Province last month, the proportion of real estate gifting by those in their 50s and 60s was 47.4%, higher than the 41.2% recorded for those in their 70s and older.

In contrast, the structure in non-metropolitan areas still centers on gifting by those in their 70s and older. Nationwide last month, 49.3% of real estate gifts were made by those in their 70s and older, accounting for nearly half of all cases. By region, Jeonbuk had the highest proportion at 78.1%, followed by Jeonnam (55.9%), Gyeongnam (55.8%), Chungnam (53.6%), and Chungbuk (52.8%), all of which saw the share for those in their 70s and older exceed half.

Experts interpret these regional differences as being influenced by the high housing prices and stricter lending regulations in the metropolitan area. As the younger generation faces limits on the amount of financial resources available for home purchases, cases of parents using asset transfers as a means of gifting have increased. In addition, changes in recent policy environments—such as the potential for stricter regulations on multiple-home owners and non-residential properties—may also be contributing factors that have accelerated the timing of asset gifting.

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