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…
Young adults in Seoul purchased their first homes at a near five-year high in July, government data revealed. This increase was attributed to rising "jeonse" rental prices and more accessible mortgage financing, according to the Supreme Court's real estate registration data. In July, 7,547 first-time home purchases were made in the capital, marking the highest monthly figure since November 2021.
Among these buyers, those in their 20s made up 11.8 percent of the total, with 887 transactions. The 30-year-olds accounted for 57 percent of the purchases, with 4,300 transactions. The surge in first-time home buying among young adults coincides with the continued rise in jeonse rental costs. Jeonse is a unique rental system in Korea, 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, according to the Korea Real Estate Board. These higher jeonse deposits make buying a home more appealing for young renters, especially when policy-backed loans lower their initial financing requirements. Eunpyeong recorded the highest number of first-time home purchases in July.
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- Young Koreans' 1st-home buying hits 5-year high as Seoul rents soar koreatimes.co.kr
