First-Time Home Purchases in Seoul Hit 4-Year, 8-Month High... Surge in Transactions Among 2030 Generation

Greater Share for Buyers in Their 20s and 30s
Eunpyeong-gu Leads in Proportion of First-Time Purchases

In July, the number of first-time home purchases in Seoul hit its highest level in four years and eight months, with a significant increase in transactions of mid- to low-priced houses, particularly among genuine demand from the 2030 generation.

View of the residential complex in downtown Seoul from Lotte World Tower Seoul Sky in Songpa-gu, Seoul. Photo by Yonhap News Agency

According to an analysis by Zigbang on the 18th, using the Supreme Court’s real estate registration data, the number of first-time home purchases in Seoul last month reached 7,547 cases (as of the 12th), the highest since November 2021, when there were 7,886 cases. This represents a 4.7% increase from the previous month, which saw 7,210 cases.

The increase was notable among buyers in their 20s and 30s. For those in their 20s, the number of first-time home purchases rose from 765 in June to 887 in July, increasing their share from 10.6% to 11.8% of total purchases. For those in their 30s, the number rose from 3,979 to 4,300, with their share climbing from 55.2% to 57%. In contrast, the number of purchases by people in their 50s declined from 654 to 571, and among those in their 60s from 321 to 274.

Zigbang explained, "First-time home purchases are subject to relatively relaxed lending standards compared to regular home purchases, which has affected buying conditions for genuine demand among 20- and 30-somethings who generally have less financial capacity." The company added, "A combination of factors may be at play, including buyers opting for purchases due to a shortage of rental properties and increased activity among genuine buyers previously considering homeownership."

By district, Eunpyeong-gu accounted for the largest share. In July, first-time home purchases in Eunpyeong-gu totaled 841, representing 11.1% of the citywide figure (7,547). The share, which was in the 5–6% range from January to May, jumped to 8.7% in June and 11.1% in July.

Eunpyeong-gu has attracted first-time buyers because it offers relatively affordable housing within Seoul, has convenient access to downtown via subway Lines 3 and 6, and features large residential complexes developed through urban redevelopment.

Apartment transactions in Eunpyeong-gu were tallied at 375 in May, 257 in June, and 254 in July. The share of record-high transactions by price, surpassing the previous highest price for the same complex and unit size, has increased for four consecutive months: 18.1% in April, 21.1% in May, 24.5% in June, and 28.7% in July.

The complexes with the most record-high transactions included the Baekryeonsan Haemoro Apartments in Eungam-dong, Nokbeon Station ePyeonhansesang Castle, and large complexes such as DMC SK View iPark Foret, DMC Lotte Castle the First, and DMC Central Xi (Complex 2) near Susaek and Jeungsan-dong DMC New Town. Most of these leading complexes are large-scale developments completed after 2019 and located near subway stations, with prices being renewed especially in these almost-new, large residential developments.

Other districts that saw a large number of first-time home purchases were Nowon-gu (607 transactions, 8%), Gangseo-gu (526, 7%), Songpa-gu (458, 6.1%), and Seongbuk-gu and Guro-gu (413 each, 5.5%).

Zigbang analyzed, "Nowon-gu, Gangseo-gu, Seongbuk-gu, and Guro-gu also have a high share of actual transactions under 1 billion won, showing a similar trend to Eunpyeong-gu. On the other hand, Songpa-gu is a relatively high-priced area (25–40 billion won range, 30.3%), but still ranks among the top in the number of first-time home purchases, which indicates that active genuine demand exists across various price ranges regardless of price."

A Zigbang representative stated, "Although the government's recently announced housing supply measures focus on strengthening financial support and providing assistance to genuine buyers, such as young people, it will take time for the supply effects to materialize. The level of financial support felt by buyers may also vary depending on the specifics and timing of implementation. Since the measures cover a wide range of items, it is necessary to monitor how each component is specifically implemented in practice and what influence they may have on transaction patterns in areas with high concentration of first-time homebuyers."

This content was produced with the assistance of AI translation services.