Since late last year, "all-in" real estate purchases by people in their 20s have been rising quickly. Analysts cite the government's tighter real estate regulations as the reason.
According to the status of "ownership transfer registration (sale)" on the Court Registration Information Plaza on the 19th, the number of people in their 20s who bought real estate (multi-unit buildings) such as apartments and low-rise apartments in Seoul and Gyeonggi-do for the first time in their lives in December last year was 2,175, a 21% (378 people) increase from October (1,797). For those in their 30s, the number of first-time homebuyers rose 2% (164 people) during the same period, while for those in their 40s it fell 4% (104 people).
By region, in Seoul, the growth rate of first-time homebuyers in their 20s was 27% (214 people), while those in their 30s rose 11% (326 people) and those in their 40s 3% (52 people). In Gyeonggi-do, only those in their 20s increased, by 16% (164 people), while those in their 30s and 40s fell 4% (162 people) and 19% (409 people), respectively.
The trend in the real estate market, where people in their 40s were the big spenders, is gradually changing. People in their 30s are taking the lead, and those in their 20s are following more quickly. While people in their 20s and 30s are grouped together as the young, their characteristics are fundamentally different. Those in their 30s generally accumulate a certain level of asset based on earned income and then use debt to buy a home, while those in their 20s have a relatively weaker income and asset base.
Even so, there is an assessment that people in their 20s jumping into the real estate market are largely making chase purchases driven by a "panic buying" mindset. "FOMO (Fear Of Missing Out)," meaning the fear of falling behind others, also appears to have played a role. Posts such as "Advice needed on all-in real estate purchase by a newlywed couple in their 20s" and "Buying a home to avoid becoming 'lightning poor' in my 20s" are frequently seen on online real estate communities.
A tally by district of the number of multi-unit buildings bought in Seoul for the first time in life by people in their 20s from October to December last year showed Gangseo District ranked No. 1 (132 cases). According to the Seoul Real Estate Information Plaza, the average apartment transaction amount in Gangseo District last month was 882.69 million won. It was followed by Songpa District (130), Mapo District (125), Nowon District (118), Dongdaemun District (112), Yangcheon District (108), and Eunpyeong District (102).
Some analysts say home donations have increased. Ko Jun-seok, a professor at Yonsei University Sangnam Graduate School, said, "Unless they are high-income professionals, it is not easy to save hundreds of millions of won in their 20s, and loans are blocked, so the increase in home purchases by people in their 20s means donations have increased." There are reportedly more people in their 50s and 60s rolling up their sleeves to help their children buy homes. A licensed real estate agent in Yongsan District, Seoul, said, "My son is in his 20s, and we're trying to buy homes in advance," and "I get many calls from key clients asking me to recommend apartments on the outskirts of Seoul around 1 billion won or redevelopment low-rise apartments."