First-Time Homebuyers in Seoul Hit Highest Level Since Moon Administration... Half Are in Their 30s [Real Estate AtoZ]

61,132 First-Time Buyers Purchased Collective Housing in Seoul Last Year
Highest Since 81,412 in 2021
Cumulative Seoul Apartment Price Increase Rate at 8.71%
Highest Since Statistics Began in 2013

Last year, the number of people who purchased a home in Seoul for the first time in their lives reached its highest level since 2021, during the Moon Jae-in administration. Despite various real estate regulations, housing prices in Seoul continued to rise, leading to a notable trend of panic buying, especially among people in their 30s, who rushed to buy before prices climbed even higher. Although the government implemented strict regulations to tighten lending and restrict transactions, first-time buyers benefited from a higher loan-to-value (LTV) ratio, which gave them relatively more flexibility. This is seen as a key factor behind the increase.

According to an analysis of data from the Court Registration Information Plaza on January 8, the number of people who purchased collective housing (including officetels, apartments, row houses, and multi-family housing) in Seoul for the first time in their lives last year was 61,132. This is the highest figure since 2021, when the number reached 81,412. Compared to 48,493 in 2024, this represents a 26.1% increase.

After recording 38,726 in 2022 and remaining at the 30,000 to 40,000 level, the number surged last year. In Incheon, another metropolitan area, the number reached 37,746 last year, an 11.9% increase from the previous year, but the growth was less pronounced than in Seoul. In contrast, Gyeonggi Province saw a 12.4% decrease over the same period, dropping from 140,250 to 122,850.

The sharp increase in first-time homebuyers in Seoul appears to be driven by a desire to own a home in the city before it becomes even less affordable. The preference for a "smart single property" has intensified, and the fear of missing out (FOMO) has prompted many to buy homes. According to the Korea Real Estate Board, the cumulative weekly increase rate for apartment prices in Seoul last year was 8.71%, the highest since statistics began in 2013. The previous record was 8.0%, set during the Moon Jae-in administration in 2018 and 2021.

As Seoul housing prices showed no signs of slowing, the number of first-time buyers rose from 3,552 in March last year to 5,962 in May. When the Lee Jaemyung administration introduced the June 27 measures to cool the overheated metropolitan real estate market, buying activity peaked. In June, the number of first-time buyers reached 7,192, the highest monthly figure.

After that, first-time purchases began to decline. However, following the October 15 measures, which designated large parts of Seoul and adjacent areas as land transaction permit zones, the number of first-time homebuyers began to rise again, as there were no new restrictions on first-time buyers. Under the October 15 measures, the LTV for non-homeowners was reduced from 70% to 40%, and homeowners were completely barred from taking out loans. In contrast, the LTV for first-time buyers remained at 70%. The number of first-time buyers, which was 4,720 in October last year, increased to 6,188 in December of the same year.

About half of those who bought a home for the first time were in their 30s. The number of buyers in their 30s was 30,473, accounting for 49.8% of the total. This was followed by buyers in their 40s (22.7%), 20s (10.6%), and 50s (10.5%). By district, Songpa-gu had the highest number of first-time buyers in Seoul (3,851), followed by Dongdaemun-gu (3,842), Gangseo-gu (3,745), and Nowon-gu (3,742), where housing prices are relatively lower and buying activity was more pronounced.

This trend is expected to continue into the new year. Despite strict regulations, housing prices continue to rise, and the supply of jeonse (long-term deposit rental) units is decreasing, leading to signs of instability in jeonse prices since the end of last year. The Housing Industry Research Institute projected that the annual increase in jeonse prices in Seoul will be 4.7% this year, 1.7 percentage points higher than last year. The institute explained that a decrease in housing supply and restrictions on gap investment (buying with a jeonse tenant in place) will further drive up prices. The rate of increase in Seoul home sale prices is also expected to be around 4.2%. As housing costs rise and residential instability intensifies, this could further stimulate homebuying sentiment.

Yoon Sumin, a real estate specialist at NH Nonghyup Bank, said, "With strong sentiment toward buying homes and first-time buyers not being subject to regulations, the number of first-time purchases has increased. Considering the rise in jeonse prices, the proportion of first-time buyers among all home purchases in Seoul is expected to increase."