First-Time Homebuyers This Year Surge 50% in Seoul Compared to Last Year

Demand for homeownership has been revived this year. Experts analyze that non-homeowners who had postponed buying a house due to persistent high interest rates are turning their attention to the sales market as jeonse prices continue to rise and sale prices also soar.

According to the 'Ownership Transfer Registration (Sales) Application Buyer Status' from the Court Registry Information Plaza on the 30th, a total of 169,935 people nationwide purchased their first-ever collective housing units (apartments, officetels, multi-family houses, etc.) from January to May this year, an increase of 32.6% compared to the same period last year.

Based on January to May data, the number of first-time buyers of collective housing units reached 247,838 in 2021, but due to the impact of rising interest rates, it sharply dropped to 142,357 in 2022 and 128,078 in 2023, about half in two years. This year, the number has recovered to around 160,000 again.

A rental and sale price list is posted at a real estate office in Seoul. Photo by Jinhyung Kang aymsdream@

By region, the increase is particularly notable in Seoul and Incheon. From January to May this year, 16,936 people purchased their first collective housing units in Seoul, a 49.7% increase compared to the same period last year. By district, the order was Gangdong-gu (2,350), Gangseo-gu (1,660), Jungnang-gu (970), Songpa-gu (786), and Yangcheon-gu (785).

In Incheon, the number of first-time buyers of collective housing units from January to May this year was 15,951, a 47.6% increase compared to the previous year.

By age group, buyers in their 30s showed the largest increase. During the same period, 76,850 people in their 30s purchased their first collective housing units, accounting for 45.2% of the total, a 38% increase compared to last year. Those in their 40s increased by 32.3% to 43,501.

In Seoul, 7,333 people in their 30s purchased their first home from January to May this year, a 69.9% increase compared to last year.

Experts analyze that the revival of demand for homeownership, which had been suppressed by high interest rates, was most influenced by the continued rise in jeonse prices this year.

Yoon Ji-hae, Senior Researcher at Real Estate R114, said, "Non-homeowners who had postponed buying a house due to the interest rate shock over the past two years judged that it would be better to buy a house as jeonse prices kept rising," adding, "Due to the recent sharp rise in sale prices, it seems that they are choosing existing home sales rather than new sales."