[Jiptech] Generational Shift in Seoul Real Estate: Young Buyers, Older Sellers

The Proportion of Sellers Aged 60 and Above Is Rising Across Seoul
From January to April, 62.3% of Buyers in Seoul Were Under 50
Real Estate Becomes a Channel for Intergenerational Asset Transfer

Editor's NoteMore than 70% of the assets held by South Korean citizens are tied up in real estate. For us, a home is not only our most important asset, but also our closest and most comfortable place. While living with our wealth locked in our homes, we provide you with the information you need to buy and sell property. Asia Economy publishes the [Jiptech] column every three weeks in collaboration with Kim Hyosun, Chief Real Estate Specialist at NH Nonghyup Bank, to help you gain the knowledge you need.

This year, spring in South Korea feels unusually long. Just when it seems that the hot summer is about to arrive, storms and rain bring the climate back to an early spring chill, creating a cycle of instability. The real estate market is showing a similar pattern. Amidst political uncertainty, low economic growth, high inflation, and a prolonged high interest rate environment, the profit structure of the asset market has lost its balance.

Currently, liquid funds in the market are moving based on the judgment that the state can no longer guarantee individuals' retirement. The older generation is adjusting their asset portfolios to generate cash flow, while the younger generation, facing an uncertain future, is focusing only on certain types of real estate that are considered safe and likely to appreciate in value. Within this trend, the Seoul housing market is showing signs of new change. Overall, both transaction volume and prices appear stagnant, but some ultra-high-priced and popular areas are experiencing continued heated demand.

More noteworthy than simple price fluctuations is the generational structural change regarding who is buying and who is selling. Analyzing real estate transaction data by district in Seoul for January to April of this year, there is a clear division in the age groups of buyers and sellers. The key point is that 'the younger generation is buying, while the older generation is selling.' During this period, sellers aged 50 and above accounted for 61% of those selling collective buildings in Seoul, while buyers under 50 made up 62.3% of the purchasers.

The proportion of buyers under 50 is similarly high not only in Gangnam-gu, but also in other popular districts such as Yangcheon-gu (72.1%) and Seongdong-gu (71.2%). In contrast, the proportion is relatively lower in Geumcheon-gu (44.4%), Dobong-gu (50.4%), and Jungnang-gu (52.8%). This suggests that younger buyers are selectively entering the market depending on the residential environment and price level of each area. Sellers, overall, are becoming older. In every district, the proportion of sellers aged 60 and above is noticeably increasing, and the proportion of those in their 70s and older is also gradually rising. This is the result of life-cycle decisions such as asset liquidation after retirement, securing funds for old age, and preparing for inheritance or gifts to children.

The Seoul real estate market is currently undergoing a generational shift. The older generation is selling, while younger, genuine demand-side buyers are purchasing. This transaction flow is now the core driving force of the market. On the surface, transactions may appear active, but in reality, real estate is serving as a conduit for intergenerational asset transfer. This structure offers implications not only for interpreting transaction data, but also for the direction of future real estate policy.

Now, the important question is not just about supply, but about who will actually buy. Without answers to questions such as whether the younger generation can afford the homes put up for sale by the elderly, or whether they can raise the initial capital, the current transaction structure may not be sustainable. Therefore, going forward, policies should provide greater financial accessibility and substantial support for first-time homebuyers among the younger generation, while also offering flexible tax structures and housing transition policies for the elderly to help them liquidate assets. In order for the housing market to avoid the instability of this spring's unpredictable weather, the government's real estate policy must be carefully designed so that generational choices are connected, not divided.

Kim Hyosun, Chief Real Estate Specialist, NH Nonghyup Bank