Biggest Spenders on Seoul Real Estate Are in Their 30s

Apartment prices grew at the highest rate so far this year in August, while the total number of homes sold also reached a new high. People in their 30s were the most avid buyers.

Advertisement

Market watchers say 30-somethings had been taking a wait-and-see approach last year due to soaring property prices but are now snapping up apartments before prices rebound from government curbs.

According to the Korea Appraisal Board, 2,608 out of 8,586 apartments sold in Seoul last month were bought by people in their 30s. That translates into 30.4 percent, a rapid surge compared to the 26.4 percent average from January to July.

Most of them plumbed for affordable areas north of Seoul like Nowon.

Lee Mee-yoon at KB Kookmin Bank said, "A lot of people in their 30s seem to believe that buying an apartment in Seoul, even after taking out a huge mortgage, pays off eventually".

"Double-income couples in their 30s are less squeamish about taking out big loans even though they earn less than older people because they've not got many other big expenses" like their kids' education, Lee added.

Meanwhile, people in their 40s, who used to be the biggest spenders, bought 2,495 homes and focused more on the affluent Gangnam area, which is pricey but promises better returns.

Koh Joon-seok at Dongguk University said, "People in their 40s who have amassed a certain level of assets want to own one home that is a good investment".