"Buy a House Before Prices Rise" Seoul's First Home Purchase Hits Highest Level in 26 Months

4,051 First-Time Home Buyers Last Month
Up 47% Since Early Year, Highest Since May 2022
"Concerns Over Rising House Prices, Impact of Interest Rate Cuts"

As housing prices continue to rise, the number of first-time homebuyers without a house in Seoul reached its highest level in 2 years and 2 months. Experts analyzed that the possibility of further price increases and the reduction in loan interest rates encouraged real demand buyers to purchase homes.

[Image source=Yonhap News]

According to the 'Ownership Transfer Registration (Sales) Application Status' from the Court Registry Information Plaza on the 6th, the number of first-time real estate buyers in Seoul last month was recorded at 4,051. This is the highest figure since May 2022 (4,696). It increased by 81 compared to the previous month (3,970) and rose by 47% (1,289) compared to January this year (2,762).

The rise in housing prices is believed to have increased anxiety that people might not be able to buy homes. Yoon Soo-min, a real estate specialist at NH Nonghyup Bank, explained, "Currently, the market is moving with actual residents. As apartment sales and jeonse prices continue to rise, anxiety about not being able to purchase a home and the psychology of needing to buy before it gets later have grown, leading real demand buyers to enter the market."

Seoul apartment sales prices have shown an upward trend for more than four months since the end of March. According to the Korea Real Estate Board's weekly apartment price trend survey, as of the 5th week of last month (29th), Seoul apartment sales prices rose by 0.28% compared to the previous week, marking the 19th consecutive week of increase.

The driving force behind the buying trend was people in their 30s. They accounted for 47% (1,903 people) of first-time real estate buyers in Seoul last month, the largest proportion among all age groups. Except for one instance in April, first-time buyers in their 30s have shown a continuous upward trend this year. This contrasts with the 50s and 60s age groups, which have fluctuated monthly. The 40s followed with 986 people, then 50s with 483, 20s with 412, those aged 70 and above with 65, and minors with 8.

The district with the highest concentration of first-time buyers in Seoul was Seodaemun-gu (350 people). Buying activity was also active in Gangdong-gu (325), Gangseo-gu (259), and Songpa-gu (246). Seocho-gu and Gangnam-gu were chosen by 187 and 116 people, respectively.

The drop in loan interest rates also stimulated buying sentiment. In the first half of this year, commercial bank loan interest rates fell to the 5% range, leading to an increase of nearly 27 trillion won in mortgage loans during the same period. Low-interest policy products such as special loans for newborns also influenced the improvement in buying sentiment. Specialist Yoon explained, "Compared to the beginning of the year, loan interest rates have decreased, prompting real demand buyers to actively enter the market."