"Buying a Home During a Housing Price Decline"... The 2030 Generation's Renewed Interest in Real Estate Study

Studying REITs, Taxes, and Accommodation Facilities
"I Won't Miss the Opportunity When It Comes"

A craze for studying real estate investment is once again sweeping among the younger generation aged 20 to 30. As real estate prices show a downward trend and forecasts suggest that next year’s housing prices will remain relatively stable, many are attending paid real estate lectures and exchanging information with the goal of securing their own homes and increasing their assets during this period.

[Image source=Yonhap News]

On the 29th, the number of KakaoTalk open chat rooms related to real estate investment that included terms like '2030' and 'MZ' in their titles or hashtags (#) was 12. Among these, the chat room with the largest number of participants had 1,397 members. In one open chat room, messages analyzing the market were continuously exchanged, such as "Whether housing prices will rise or fall depends solely on supply. From 2024 to 2026, there will be a supply cliff. It seems difficult for prices to fall further," or "The GTX A Line sections 1 and 2 will open in 2024, and the Seohae Line will also be extended. It might be good to look for houses in areas benefiting from these transportation improvements. Prices are expected to rise once more at the time of completion." Posts explaining basic real estate terminology were also frequently shared.

Expanding the scope to all real estate investment-related open chat rooms without age restrictions increases the number to 346. Most of these rooms were created at the end of last year or this year, with each chat room having between 500 and 1,500 participants. The top three real estate investment internet cafe communities on a domestic portal also show an increasing trend in daily average app launches (the number of visits via the portal cafe app). From the 1st to the 15th of this month, the daily average app launches were 5,245,323, more than double the approximately 2,610,069 daily average from August 1st to 15th, three months earlier. This is interpreted as an increase in interest in studying real estate recently.

This trend is underpinned by falling housing prices. According to KB Kookmin Bank’s monthly housing price trend data released on the 28th, the average apartment price in the Seoul metropolitan area fell by 9.75% annually. Incheon (-11.47%) and Gyeonggi (-10.53%) saw drops exceeding 10%, and Seoul also declined by 7.53%. Nationwide apartment prices decreased by 8.04% during the same period. Forecasts suggest that housing prices will remain relatively stable next year. Professor Seo Jin-hyung of the Department of Real Estate at Gyeongin Women’s University said, "The real estate market is a lagging indicator of the general economy. With sustained medium interest rates and ongoing global economic crises, it seems difficult for prices to rise soon," adding, "For the 2030 generation, it is advisable to secure their own home as soon as a proper plan is established."

The younger generation aged 20 to 30 believes the time to buy a home has come. Jeon Mo (32, female), who attends real estate lectures, said, "Although various factors like high interest rates are not entirely favorable, I plan to secure my own home through gap investment before prices rise further," adding, "I am genuinely worried that if I miss this opportunity, it might be forever difficult to own a home." Kim Mo (30, male), who is preparing to marry next fall, said, "I believe Seoul housing prices will trend upward in the long term. I think the sooner I buy, the better," and added, "I plan to purchase while prices are stagnant."

The number of 2030 individuals aiming to increase assets through real estate has also risen again. According to a recent survey by market research firm Embrain Trend Monitor of 1,000 male and female office workers aged 19 to 59, 88.9% of respondents believed that even working hard at their jobs would not make them wealthy, and 80.8% said it was necessary to study investments diligently outside of work hours. Kim Mo (34, male), who runs a business offering income-generating real estate investment lectures, said, "In the past, most students were in their late 30s or older, married with children, but recently, students in their late 20s to early 30s have increased." Dong Mo (35, male), who is attending real estate investment lectures, said, "Seeing a friend earn extra income by running a goshiwon (small lodging) made me realize I should study real estate investment," adding, "After purchase, real estate requires much less attention than stocks, which is one reason I consider real estate investment as it interferes less with my main job."

Professor Park Hap-su of Konkuk University’s Graduate School of Real Estate said, "Studying real estate investment as a financial strategy is better the sooner you start. It will greatly help achieve the goal of owning your own home." However, caution is needed to avoid being swayed by uncertain information. Professor Seo said, "Even when attending lectures or receiving information, you should fact-check and analyze after studying rather than blindly trusting it," adding, "You should not be completely swayed by the words of a few people." Professor Park also said, "It is important to avoid listening only to one-sided claims like ‘this place is good.’ Such an approach can lead to a distorted view of the market."