[Young Buyers, 2030] Areas with High Apartment Purchases by Those Under 30 Also Show High Loan Ratios

In Seoul, districts with a high proportion of apartment purchases by those under 30 largely overlap with areas showing high loan ratios for collective buildings. The trend of young buyers relying on policy financing and mortgage loans for actual residence is creating a distinct regional disparity in debt burdens among the younger generation.

According to the Supreme Court's registration information portal, the average loan index for collective buildings in Seoul was 49.01 as of May. The loan index is calculated by dividing the registered mortgage amount by the sale price, indicating that a higher number reflects greater reliance on borrowing relative to property value. The highest loan indices were recorded in Geumcheon-gu at 63.02, Nowon-gu at 56.57, and Dobong-gu at 55.57. In contrast, affluent areas like Gangnam showed significantly lower indices in the 30s, indicating lower borrowing dependence in high-priced neighborhoods, while mid-low priced outskirts exhibited a higher borrowing ratio.

Geumcheon-gu had the highest loan index in Seoul, despite being among the districts with the lowest apartment prices. According to the real estate information app Zipum, the price per 3.3 square meters in Geumcheon-gu was 31.44 million won in 2025, significantly below the Seoul average of 54 million won. The lower property prices mean that even with the same loan limit, the proportion of the sale price covered by borrowing is larger, leading to a higher dependence on loans among buyers who can utilize policy loans.

When considering both the purchase proportion and transaction volume for those under 30, Nowon-gu stands out. In April, 56.4% of apartment purchases in Nowon-gu were made by buyers under 30, the highest in Seoul, with a loan index of 56.57, exceeding the city average by 7.5 points. The transaction volume in April was 920, more than three times the average of 290 across Seoul's 25 districts. This indicates a clear trend of younger buyers in mid-low priced outskirts utilizing loans to purchase homes.

As lending regulations tighten, the Seoul apartment market has seen varying entry possibilities based on price ranges. For homes priced below 1.5 billion won, a mortgage limit of 600 million won remains, but this limit decreases for homes exceeding that price. Additionally, those meeting policy loan criteria, such as first-time buyers and newlyweds, can access more favorable limits than standard mortgages. For buyers under 30 who need loans, the mid-low priced outskirts have become a primary entry point.

Baek Sae-rom, head researcher at Real Estate R114 Research Lab, stated, "The 1.5 billion won threshold allows for loans up to 600 million won, making it a key entry point for the 2030 generation. As rental prices have risen, demand from renters transitioning to purchases below 1.5 billion won has increased, particularly in mid-low priced areas like Gangseo and Jungnang."

The aggressive purchasing trend driven by loans is also influenced by the overall rental crisis in Seoul and the rising home prices in mid-low priced outskirts, fueled by a fear of missing out (FOMO). According to the Korea Real Estate Agency, Seoul's apartment rental prices rose by 0.29% in the first week of June, marking the highest increase since November 2015. The cumulative increase since the beginning of the year is 3.77%, compared to just 0.65% during the same period last year.

As rental prices soar and inventory dwindles, the sentiment of "it’s better to buy" has propelled purchases among those under 30. Seoul's apartment prices also saw an annual increase of 8.98% last year, the highest since the Korea Real Estate Agency began tracking statistics in 2013. With both rental and sale prices rising simultaneously, actual demand has concentrated on homes within the operational loan limits.

Yang Ji-young, a specialist at Shinhan Bank's Premier Pathfinder, noted, "With the difficulty in finding rental homes and limited supply, many have transitioned from renting to buying. Mid-low priced apartments allow for loans up to 600 million won, and it appears that high-income individuals in their 20s and 30s, along with those benefiting from stock market gains, are combining loans to make purchases. This trend is likely to continue until there are changes in regulations or financial policies due to the ongoing shortage of rental inventory."