Seoul June Housing Transactions Surpass 10,000... 'Panic Buying' Led by 30s

As of July 8, June recorded 10,552 cases, the highest this year
Young buyers flock amid fears of soaring housing prices
Chasing purchases of mid-to-low priced apartments in Nowon and others

[Asia Economy Reporter Onyu Lim] As fear of soaring housing prices drives people in their 30s to hoard apartments, the number of apartment transactions in Seoul exceeded 10,000 in June. This is the first time this year that monthly apartment transactions have surpassed 10,000. It is analyzed that the younger generation, feeling anxious about the soaring sale and jeonse prices despite the government's more than 20 measures, hurriedly started purchasing homes. The sharp increase in transactions in relatively affordable areas in Seoul, such as Nowon and Gangseo districts, proves this.

According to the Seoul Real Estate Information Plaza on the 8th, the reported apartment sales transactions in Seoul for last month reached 10,552. Compared to the previous month's 5,520 transactions, this is a rapid increase. Considering that the real transaction reporting period is 30 days, industry insiders expect that last month's total apartment transactions in Seoul could exceed 15,000, surpassing the previous monthly record of 11,570 in October last year.

Last month's apartment buying trend was particularly prominent in the outskirts where mid- to low-priced apartments are concentrated. In Nowon-gu alone, 1,296 transactions took place. This means that 12.3% of all transactions across Seoul's 25 autonomous districts were concentrated in this area. Gangseo-gu also recorded 714 transactions, marking the highest since August 2018.

In the market, a monthly transaction volume of 10,000 is interpreted as an indication of excessive buying demand concentration. In fact, since the survey of Seoul apartment sales transactions began in 2006, the monthly transaction volume has exceeded 10,000 only 26 times, mostly coinciding with periods of rapid housing price increases. For example, in October 2006, when Seoul's monthly apartment transactions peaked at 19,803, it was during the Roh Moo-hyun administration, a period of soaring housing prices.

Experts view this surge in transaction volume as a sign that the government's housing price stabilization measures have lost market trust. Despite the June 17 real estate measures, housing prices have risen sharply, and even jeonse prices have increased, causing the younger generation to engage in panic buying. A representative from real estate agency A in Junggye-dong, Nowon-gu, said, "Many recent buyers are young people, including newlyweds. Since housing prices rise overnight, there is a widespread sentiment that 'if not now, I may never be able to buy a home.'

Meanwhile, according to the Korea Real Estate Board, Seoul apartment jeonse prices have been rising for 53 consecutive weeks until the last week of June. The rate of increase also expanded from 0.08% the previous week to 0.10%. Kim Hak-ryeol, director of SmartTube Real Estate Research Institute, analyzed, "As buyers trying to purchase even affordable apartments in the outskirts increase due to rising housing prices and jeonse difficulties, housing prices in the Geumgwan districts (Geumcheon, Gwanak, Guro) and Nodobang districts (Nowon, Dobong, Gangbuk) are rapidly rising."