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

In Seoul, areas with a high percentage of apartment purchases by those under 30 largely overlap with regions that have high loan indices for multi-unit buildings. The trend of young buyers relying on policy financing and mortgage loans for actual residence purchases is creating a distinct regional disparity in debt burdens among younger generations.

According to the Supreme Court's registration information as of May, the average loan index in Seoul is 49.01. The loan index is calculated by dividing the registered mortgage amount by the sale price, indicating a higher reliance on borrowing relative to property values. The highest loan indices were found in Geumcheon-gu at 63.02, Nowon-gu at 56.57, and Dobong-gu at 55.57. In contrast, Gangnam-gu and Seocho-gu had much lower indices at 33.43 and 32.95, respectively. This indicates that areas with high-priced homes have lower borrowing dependence, while mid-low priced outskirts show a higher proportion of borrowing relative to home prices. The paradox is that those buying expensive homes tend to borrow less, while those purchasing relatively cheaper homes are borrowing more.

Geumcheon-gu had the highest loan index in Seoul, despite being among the areas 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 lower than the Seoul average of 54 million won, by over 60%. The lower property prices mean that even with the same loan limits, the proportion of the sale price represented by the loan is larger, leading to higher borrowing dependence among buyers who can utilize policy loans.

When considering both the percentage of purchases by those under 30 and transaction volumes, Nowon-gu stands out. In April, the percentage of apartment purchases by those under 30 in Nowon-gu was 56.4%, the highest in Seoul, and its loan index of 56.57 exceeded the Seoul 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 those under 30 purchasing homes with loans in mid-low priced outskirts.

As loan regulations tighten, the Seoul apartment market is showing varied entry possibilities based on price ranges. For homes priced under 1.5 billion won, the mortgage limit remains at 600 million won, but for homes over that price, the limit decreases. Additionally, those meeting conditions for policy loans, such as first-time buyers and newlyweds, can access more favorable limits compared to standard mortgages. For those under 30 who need to utilize loans, the mid-low priced homes in the 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, there has been a strong trend of demand shifting from renting to purchasing homes priced under 1.5 billion won, particularly in mid-low priced areas like Gangseo and Jungnang.”

The aggressive purchasing through loans is also influenced by the overall rental crisis in Seoul and the rising home prices in mid-low priced outskirts, driven by a fear of missing out (FOMO) during the price surge. According to the Korea Real Estate Agency, the weekly rental prices for Seoul apartments 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%, nearly six times higher than the same period last year, which saw only a 0.65% increase.

As rental prices soar and listings dwindle, the sentiment of “it’s better to buy” has propelled the purchasing trend among those under 30. Seoul's apartment prices also rose by 8.98% last year, the highest increase since the Korea Real Estate Agency began tracking related statistics in 2013. In a situation where both rental and sale prices are rising simultaneously, actual demand has concentrated on homes within the price range where loan limits apply.

Yang Ji-young, a specialist at Shinhan Bank's Premier Pathfinder, noted, “With it being difficult to find rental homes and a lack of 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, as well as those who have profited from stock investments, are combining loans with purchases. Furthermore, until there are changes in regulations or financial policies, the demand for purchasing due to the shortage of rental properties is expected to continue.”