Gangnam Line Gift Explosion... 'Yeongkkeuljok' Moves to Incheon

Sharp Increase in Apartment Purchases by People in Their 30s in Incheon in March

The view of apartment complexes in Cheongdam-dong, Gangnam-gu, seen from Eungbongsan, Seongdong-gu, Seoul

Last month, there was a sharp increase in apartment purchases by people in their 30s in Incheon, where this year's apartment price growth rate was five times that of Seoul. It appears that young "Yeongkkeuljok" who could not afford the soaring housing prices in key areas of Seoul and Gyeonggi Province flocked to Incheon.

According to the age group status of apartment buyers from the Korea Real Estate Board on the 20th, the number of purchases by people in their 30s in Incheon last month was recorded at 1,703. This is a 33.25% increase compared to 1,278 in the previous month. The purchases by people in their 30s, which remained in the triple digits in the second half of last year, surged to around 1,400 in December and have since maintained over 1,000.

Apartment purchases by those aged 20 and under in Incheon also recorded 484, showing a 40.2% increase compared to the previous month. Cumulatively through March this year, purchases by people in their 20s totaled 1,164, a 27.5% increase compared to 913 in the same period last year.

The increase in purchases by the 2030 generation, represented by the "Yeongkkeuljok," is interpreted as a result of the government's strengthened loan regulations and anxiety caused by the rapid rise in housing prices. The soaring prices have created a sense of urgency that "if not now, it will be difficult to own a home," which has manifested as buying activity in the outskirts of Seoul.

The buying trend among young people is also driving up apartment prices in Incheon. As of the survey on the 5th of this month, the apartment price increase rate in Incheon was 0.49%, expanding for three consecutive weeks. The first quarter growth rate this year was 5.50%, five times that of Seoul (1.05%).

On the other hand, in Seoul, the buying trend among the 2030 generation is slowing down. Apartment purchases by people in their 30s in Seoul, which recorded 3,388 in December last year, decreased by 52% to 1,622 in March. Those aged 20 and under also dropped by 56%, from 462 to 203 during the same period.

Meanwhile, apartment gifts in Gangnam-gu, Seoul, surged to an all-time high last month. Ahead of the comprehensive real estate tax hikes and capital gains tax increases for multi-homeowners in June, many multi-homeowners in Gangnam faced a crossroads of whether to hold, sell, or gift their properties, with the dominant analysis being that many chose gifting. Additionally, as Seoul housing prices rose significantly, it appears that wealthy families hurried to secure homes for their children through apartment gifts in Gangnam.