As home prices continue to rise, particularly in the metropolitan area, the demand for home purchases among newlyweds is increasing. The desire to secure a home before prices climb further is driving newlyweds, who may not have sufficient assets early in their marriage, to utilize loans from financial institutions.
According to the National Data Agency on September 28, the median loan balance for newlywed couples (married within the last five years) who borrowed from financial institutions in 2024 was 179 million won, a 5.0% increase from 170.51 million won the previous year. Among these loans, 26.6% were in the range of 100 million to 200 million won, while 24.0% were high-value loans exceeding 300 million won.
Newlywed couples who own homes tend to have larger loan amounts. In 2024, the median loan balance for newlywed homeowners was 228.24 million won, which is 86.64 million won higher than the 141.6 million won for couples without homes. Additionally, 33.2% of homeowners had loans exceeding 300 million won, nearly double the 16.7% among non-homeowners.
The loan balances include not only mortgage loans but also household loans from both primary and secondary financial institutions, as well as business loans for individual entrepreneurs. However, considering that the loan balances and high-value loan proportions are higher for newlywed homeowners than for non-homeowners, it indicates that those who have secured homes are increasingly relying on financial borrowing.
In Seoul, the number of newlywed couples owning homes has decreased from 88,500 in 2015 to 48,989 in 2024, a drop of 44.6%. However, the proportion of high-value homes among these couples has increased. In 2024, 38.5% of newlywed homeowners in Seoul had properties valued between 300 million and 600 million won, while 31.4% owned homes valued over 600 million won.
Additionally, a major commercial bank reported that the amount of new loans for first-time home purchases surged from 806.4 billion won in 2022 to 6.3383 trillion won in 2024, indicating a significant increase in the use of loans for first-time homebuyers.
Meanwhile, home prices in Seoul continue to rise. According to the Korea Real Estate Agency, the average sale price of apartments in Seoul increased by 0.13% in the third week of September, marking the 85th consecutive week of price increases since the first week of February last year.
Despite the rising home prices, the purchasing activity among younger buyers is becoming more vigorous. In the first half of this year, 40.8% of apartment buyers in Seoul were in their 30s, up from 32.9% during the same period last year, representing a 7.9 percentage point increase. The number of purchases by this age group also rose from 14,269 to 17,225.
The pressure from rising home and rental prices is believed to be accelerating housing purchases among young households. As the perception grows that home prices will continue to rise, concerns are emerging that newlyweds may increasingly depend on loans to secure housing.
* This article has been translated by AI.
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