Seoul Apartment Sale and Jeonse Prices Rise Together, 3 Reasons Why 3040s 'Young-geul' Buying is Back
As the upward trend in jeonse prices in major areas of Seoul pushes up sale prices, home purchases by the 3040 generation, who feel housing insecurity, are surging again.
Buying Sentiment Ignited by Rising Jeonse Prices, Signs of 'Panic Buying' Among 3040s
The housing market is buzzing again as sale and jeonse (lump-sum deposit lease) prices for Seoul apartments rise simultaneously. In particular, as jeonse prices climb relentlessly due to the instability of the rental market, the so-called 'Young-geul' (soul-scraping borrowing) buying trend is noticeably increasing, centered around the 3040 generation who feel housing insecurity.
Real estate industry experts point to the shortage of jeonse properties and expectations of interest rate cuts as the core reasons for this phenomenon. As the possibility of a rate cut by the US Federal Open Market Committee (FOMC) in the second half of the year emerges, the prospect of lower mortgage rates is stimulating preemptive buying sentiment. On top of this, coupled with concerns about a shortage of new apartment supplies, properties are rapidly being exhausted, mainly in major school districts and areas with favorable transportation projects in Seoul.
Real Estate Market Impact and Future Outlook
The buying momentum of the 3040 generation is breathing warmth into the outskirts beyond core areas such as Gangnam and 'Ma-Yong-Seong' (Mapo, Yongsan, Seongdong) in Seoul. However, unlike in the past, there is a strong tendency to prefer one solid house for actual residence rather than blind investment, so regional polarization is expected to deepen.
The government is seeking to stabilize the market by discussing tax reforms, such as abolishing the heavy taxation on multiple homeowners and raising the basic deduction for the comprehensive real estate holding tax, but critics point out that it is not enough to control the short-term upward pressure on housing prices. Since purchasing through excessive loans can be vulnerable to macroeconomic volatility in the future, a conservative approach carefully monitoring interest rate trends and household debt soundness is necessary.
FAQ: Core Questions Regarding Seoul Apartment Purchases
- Q: What is the main cause of the current rise in Seoul apartment jeonse prices?
A: The main cause is the supply-demand imbalance resulting from the overlapping decrease in move-in volume in 2026 and the exhaustion of properties with expiring contract renewal claims under the Three Lease Laws. - Q: What will happen to housing prices if the real estate holding tax reform bill passes?
A: There is a possibility that some gap investment demand will revive due to the easing of the tax burden on multiple homeowners, but a limited rise centered on blue-chip properties is expected rather than an explosive increase due to the strengthening of actual residence requirements. - Q: Is it right to buy a house now?
A: As expectations of mortgage rate cuts have been pre-reflected, conservative and planned financing considering one's income level and loan repayment ability is essential.