Apartment "Big Spender" Thirty-somethings

#Park (31), a resident of Gangseo-gu, Seoul, recently purchased an older apartment in Bucheon, Gyeonggi Province, valued at around 400 million KRW, using a special BoGeumJaRi loan. He had planned to live in his current monthly rental apartment for about four years, but when a property in his desired price range appeared, he decided to move after just one year. Park said, “I thought housing prices hit bottom earlier this year, so I hurried to buy. I also saw the special BoGeumJaRi loan’s graduated repayment option and the ability to refinance later without fees as advantages.” #Lee (30), an office worker, applied for all the apartment complexes offered in Seoul during the first half of this year. He believed the threshold for subscription had significantly lowered due to an increase in lottery-based allocations and the easing of interim payment loan restrictions. Lee said, “Prices keep rising, and if I do nothing, it will be impossible to own a home in Seoul. So, I’m applying for all co

As the apartment 'Yeongkkeul' craze resurges, household loan balances in the banking sector exceeded 1,000 trillion won last month, marking an all-time high. This is attributed to an increase in home purchases and a decrease in lease deposit return loans due to the 'reverse jeonse crisis,' leading to a rise in mortgage loans. There are concerns that if the shock from US interest rate hikes recurs, a financial crisis triggered by household debt could occur due to bankruptcies among Yeongkkeul borrowers. The reason household loans have increased for three consecutive months recently is due to the rise in mortgage loans. According to the 'Financial Market Trends' announced by the Bank of Korea on the 12th, the balance of household loans (including policy mortgage loans) at deposit banks reached 1,062.3 trillion won as of the end of June, marking the highest balance ever. Compared to the previous month, household loans in the banking sector had decreased until March this year. However, fr

In the housing sales market, the emergence of people in their 30s as major buyers is analyzed to be influenced by a sharp decline in housing permits, construction starts, and pre-sale volumes?leading indicators of housing supply?and continuously rising pre-sale prices. Due to concerns that rising raw material costs, fears of unsold units, and increasing financial costs are shrinking housing supply and potentially driving up house prices, people in their 30s have actively engaged in purchasing. Additionally, the monthly rising pre-sale prices have reinforced the perception among people in their 30s that "today's house prices are the cheapest," leading to an increase in buying momentum. According to the Ministry of Land, Infrastructure and Transport on the 14th, the number of housing construction starts from January to May this year was 77,671 units. Compared to the same period last year (January to May), when construction starts were 149,019 units, this represents a 47.9% decrease?almo