The financing methods used by the 2030 generation to purchase apartments in Seoul have evolved. During the first wave of home buying in 2020-2021, buyers relied heavily on ultra-low interest rates, credit loans, and overdraft accounts. Recently, however, this generation has shifted to cashing out financial assets such as stocks, bonds, and cryptocurrencies to fund their home purchases, supplemented by first-time homebuyer loan limits.
According to data submitted by the Ministry of Land, Infrastructure and Transport to Kim Jong-yang, a lawmaker from the People Power Party, the amount raised by those in their 30s through the sale of stocks, bonds, and cryptocurrencies for home purchases in Seoul reached 721.1 billion won in the first quarter of this year. This figure surpasses the 585.5 billion won raised by those in their 40s and the 464 billion won by those in their 50s. Since 2020, the 40s had consistently raised the most funds in this category, but for the first time, the 30s topped the list in the first quarter of this year.
It is important to note that since February of this year, the sale proceeds from cryptocurrencies have been included in the funding plan reports. This change in statistical criteria may affect comparisons with past figures. Nevertheless, it is notable that the 30s have allocated more financial assets toward home purchases than the relatively wealthier 40s and 50s.
After cashing out their financial assets, buyers utilized loans to the maximum extent possible. Although the loan-to-value ratio (LTV) for general housing loans in regulated areas has decreased following the 10-15 measures, the limit for first-time buyers remains at 70%. In a climate where the borrowing threshold for general buyers has increased, first-time loans have served as an exception for genuine buyers in the 2030 generation to enter the Seoul apartment market.
In fact, the number of individuals in their 30s who purchased a multi-unit building for the first time in Seoul reached 12,403 in the first quarter of this year, doubling from 6,167 in the same period last year. This is the highest number since the first quarter of 2021, when demand surged during the COVID-19 pandemic, which saw 13,438 buyers. This indicates that demand for first-time preferential loans remains concentrated in the market despite high interest rates and loan regulations.
The Bank of Korea's household debt statistics also confirm this trend. In the first quarter of this year, the average new housing loan for borrowers in their 30s reached 289.9 million won, the highest on record. The share of new housing loans taken out by those in their 30s also increased to 41.4%, up from 37.1% in the previous quarter.
Recently, the approach of the 2030 generation has shifted from "using loans instead of stocks and cryptocurrencies" to "cashing out stocks and cryptocurrencies and adding loans." While the practice of aggressively accumulating credit loans and overdraft accounts has decreased, the tendency to liquidate financial assets and utilize all available loans still reflects a strong inclination toward leveraging.
A real estate agent in a mid-range apartment area in Seoul noted, "Recently, buyers in their 30s often check the maximum loan amount they can obtain and then liquidate stocks or cryptocurrencies to make up any cash shortfall. While the atmosphere is not as aggressive as before in terms of taking out large credit loans, the tendency to cash out financial assets and layer on first-time buyer loans remains strong."
* This article has been translated by AI.
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