In March, Buyers in Their 40s Surpass Those in Their 30s in Seoul Apartment Purchases After Lifting of Land Transaction Permit Zones

Based on March sales reports, people in their 40s account for 33.8%
People in their 30s, with less financial power, follow at 32.5%

As the lifting of land transaction permit zones in Gangnam, Seoul has led to an increase in apartment transactions and rising prices, it was found that in March, the proportion of apartment purchases by people in their 40s surpassed those in their 30s.

According to data on apartment sales in Seoul by age group from the Korea Real Estate Board released on the 4th, out of 9,349 apartment sales reported in March, buyers in their 40s accounted for 33.8% (3,158 cases), ranking first among all age groups. This figure is 1.3 percentage points higher than the 32.5% (3,041 cases) for those in their 30s.

Since statistics were first released in 2019, buyers in their 30s had consistently led apartment purchases in Seoul. In 2019, the average proportion of buyers in their 30s was 28.8%, slightly ahead of the 28.7% for those in their 40s, but in 2020, the gap widened as the share for those in their 30s rose to 33.5% while that for those in their 40s dropped to 27.5%.

In 2021, as apartment prices surged, the so-called "Yeongkkeuljok" phenomenon emerged, with buyers in their 30s (36.4%) making large-scale purchases in Seoul, widening the gap with those in their 40s (26.4%) to 10 percentage points.

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However, last year, due to the burden of higher interest rates, the implementation of the second phase of the Debt Service Ratio (DSR), and commercial banks suspending loans, the purchasing power of buyers in their 30s weakened. As a result, the proportion of buyers in their 40s (31.7%) caught up with that of those in their 30s (31.9%).

In the first half of last year, buyers in their 30s still accounted for the largest share, but from July to November, the proportion of buyers in their 40s surpassed that of those in their 30s. Then, from December last year to February this year, buyers in their 30s once again took the lead, but in March, those in their 40s overtook them.

The renewed dominance of buyers in their 40s in March is believed to be largely due to the lifting of the land transaction permit zone in Gangnam, which led to increased transactions in popular areas with high apartment prices such as Gangnam and "Mayongseong" (Mapo, Yongsan, Seongdong Districts).

In Gangnam-gu and Seocho-gu, buyers in their 40s accounted for 42.8% and 44.5%, respectively, overwhelmingly outpacing those in their 30s (19.5% and 21.1%, respectively). In Songpa-gu and Gangdong-gu as well, the share of buyers in their 40s was 35.6% and 35.3%, higher than the 26.9% and 25.5% for those in their 30s.

In Yongsan-gu and Yangcheon-gu, which have positive redevelopment prospects, the gap between buyers in their 40s (38.1% and 43.8%) and those in their 30s (25.5% and 30.4%) exceeded 10 percentage points.

In contrast, nationwide, buyers in their 30s accounted for 27.3% last month, higher than the 26.3% for those in their 40s. Since 2019, the proportion of buyers in their 40s had been higher nationwide, but starting in 2023, buyers in their 30s began to slightly outpace those in their 40s on an annual average, and this trend has continued into this year.

As a result, industry observers believe that the current apartment sales market, divided between buyers in their 30s and 40s, will see ongoing competition for dominance depending on lending regulations, interest rates, the introduction of new policy financial products, and changes in housing prices.