In Mar., in Gyeonggi Province, one out of every three home sale transactions was bought by people in their 30s. With Seoul home prices rising, tighter lending rules, and heavier jeonse and monthly rent burdens overlapping, more young end users are opting to buy their own homes in Gyeonggi instead of Seoul. Demand was especially concentrated on small to mid-size dwellings with exclusive areas of 84㎡ or less.
On the 2nd, according to the Korean Statistical Information Service (KOSIS) and Gyeonggi Province, among home sale contracts in Gyeonggi in Mar., transactions in which the buyer was in their 30s totaled 6,583. That was 32% of all transactions, which numbered 20,581. In other words, one out of every three Gyeonggi dwelling sale contracts involved a buyer in their 30s.
By age group, the share for people in their 30s was the largest. Next were those in their 40s, with 4,512 transactions, or 22% of the total. Those in their 50s accounted for 3,902 transactions, or 19%, and those in their 60s had 2,903 transactions, or 14%.
By floor area, transactions for small to mid-size dwellings stood out. Transactions for dwellings with exclusive areas of 61–85㎡ totaled 9,353, the most at 45.4% of the total. Exclusive 41–60㎡ also recorded 7,157 transactions, or 34.8%. Exclusive 21–40㎡ had 1,225 transactions, or 6%, and exclusive 20㎡ or less had 226 transactions, or 1.1%.
End users in their 30s who work in Seoul see adjacent Gyeonggi areas as realistic places to buy. A person surnamed Min (33) said, "Even if you work in Seoul, when you weigh both your financial capacity and commute time, many people effectively see Gyeonggi areas close to Seoul as the last line." Min said, "Because of this, prices have risen a lot even in Gyeonggi areas with good access to Seoul, such as Suji in Yongin and Bundang in Seongnam, making it no longer easy to buy dwellings in the Gyeonggi region."
Experts say rising jeonse and monthly rents in Seoul and a lack of rental listings have also fueled buying by people in their 30s in Gyeonggi dwellings. As it has become harder to find jeonse or monthly rentals in Seoul, more people are opting to buy a home in Gyeonggi areas close to Seoul.
In fact, the share of Seoul residents buying dwellings in Gyeonggi is also rising. ZIGBANG CO.'s analysis of ownership transfer application data from the Supreme Court's Registration Information Plaza found that in Mar., among those who bought multi-unit buildings such as apartments and officetels in Gyeonggi Province, 15.69% were Seoul residents. That was up 1.17 percentage points from 14.52% in the previous month. This is the highest level in 45 months since 16.28% in Jun. 2022.
Ko Joon-seok, a professor at Yonsei University Sangnam Institute of Management, said, "Among end users in their 30s, including newlyweds, demand to buy a home is growing, but because Seoul dwelling prices are so high, people are being pushed to Gyeonggi to buy." Ko said, "Gyeonggi areas with good access to Seoul or with self-sufficient functions that offer quality jobs are likely to continue seeing dwelling demand."
Nam Hyuk-woo of Woori Bank's Real Estate Research Institute said, "As the capacity to buy dwellings in key areas of Seoul has weakened, more people are moving down to adjacent Gyeonggi apartments." Nam said, "The increase in small-size transaction volume is not simply because of a rise in one- to two-person households," adding, "It can be seen as the effect of growing demand for relatively smaller, less expensive dwellings to reduce the price burden."