Young Koreans' 1st-home buying hits 5-year high as Seoul rents soar
First-time home purchases by people in their 20s and 30s hit a nearly five-year high in Seoul in July, as rising “jeonse” rental costs and relatively accessible mortgage financing encouraged more young renters to enter the housing market, government data showed Wednesday. According to the Supreme Court’s real estate registration data, 7,547 first-home purchases were recorded in the capital city…
In July, first-time home purchases by young South Koreans in their 20s and 30s reached a five-year high in Seoul, according to government data released on Wednesday. The Supreme Court's real estate registration records revealed that 7,547 first-home purchases were made in the capital city last month, the highest monthly total since November 2021.
Younger buyers aged 20-30 accounted for 11.8% of the total, purchasing 887 properties, while those in their 30s made up 57% of the purchases, acquiring 4,300 properties. The surge in first-time homebuying can be attributed to the increasing jeonse rental costs and the relatively easy access to mortgage financing. Jeonse is a unique Korean rental system where tenants pay a large lump-sum deposit instead of monthly rent.
The apartment jeonse price index in Seoul increased to 104.39 in June from 100 at the beginning of the year, as reported by the Korea Real Estate Board. This trend makes buying a home comparatively more attractive for young, eligible renters, especially when backed by policy-supported loans, which lower their initial financing burden. Eunpyeong recorded the highest number of first-home purchases in the city during this period.
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- Young Koreans' 1st-home buying hits 5-year high as Seoul rents soar koreatimes.co.kr
