I can’t live tomorrow… Panic buying in line for missing children’s apartments

Re-proliferation of panic buying centered on ‘Nodogang’ for the 2030 generation
Consumers are flocking in from the provinces… up to one person household
Loan deregulation ‘trigger’… Seoul home prices soaring

A panoramic view of an apartment in Mia-dong, Gangbuk-gu, Seoul Photo = Reporter Lee Song-ryeol

“In less than two weeks after the loan regulations were relaxed, the 59m2 exclusive stock ran out. Since there’s no stock, I’m now turning to the exclusive 84m2. The next time I inquire, there won’t be any. It’s better to find out soon.”( Authorized broker A in Mia-dong, Gangbuk-gu)

End-users are flocking to the outskirts of Seoul, such as Nodo River (Nowon, Dobong, Gangbuk-gu). As apartment prices in Seoul skyrocketed and loan regulations were eased, even now, consumers looking to buy their own homes are flocking to mid- to low-priced apartments.

These consumers are mainly the 2030 generation. Centering on them, ‘panic buying’ (panic buying) is spreading again. However, in the field, there is a consensus that it is different from the panic buying of the past. Unlike in the past, when buyers picked up items, recently they wait and buy immediately when they come out. Unlike in the past, when tenants or residents of neighboring areas bought the products, consumers are flocking from all over the country.

Loan restrictions lifted and 3 homes have already been sold

According to the real estate industry on the 20th, not only local end-users but also people from the provinces are buying apartments at ‘SK Bukhansan City Apartment’ in Mia-dong, Gangbuk-gu, Seoul. This apartment has already sold three cases this month alone, and last month a whopping 30 cases have been traded, making it the most traded apartment in Seoul.

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The 59 m² dedicated to this complex was traded for 699 million won on the 6th. This complex, which was changed at a low price of 595 million won in January last year, rose by 100 million won in just six months. As the small-area apartments were quickly exhausted, a sale contract was signed for the price of 84 square meters this month at 780 million won. The asking price of 84 square meters for this complex is currently up to 950 million won.

'Panic buying' that spread to Nodo River and Geumgwan-gu.  Photo = Hankyung DB

‘Panic buying’ that spread to Nodo River and Geumgwan-gu. Photo = Hankyung DB

“There are a lot of inquiries from newlyweds, not only from Seoul, but also from the provinces,” said an official from H-authorized brokerage near this complex. “As there are no apartments with this price range in Seoul, it seems that end-users are interested.” . Not only this complex, but also nearby Byeoksan Live Park and Jeongneung Poongrim I-One in Jeongneung-dong, Seongbuk-gu, he said, are in high demand.

Nowon-gu, where low- and mid-priced apartments are clustered, is similar. Local brokerage firms explain that many end-users flocked to other neighborhoods in Nowon-gu, such as Junggye-dong, instead of Sanggye-dong, where prices soared in anticipation of reconstruction.

“Since the sale of multi-family homes, there has been a lot of change of hands, mainly by end-users,” said an official from a real estate agent in Junggye-dong, Nowon-gu. He said that the number of inquiries has increased since the loosening of loan regulations.

Seoul apartment view.  photo = Yonhap News

Seoul apartment view. photo = Yonhap News

Loan deregulation easing, pushing up mid-range apartment prices

People in their 20s and 30s are flocking again to buy mid- to low-priced apartments. 6 out of 10 people in 2030 are buying an apartment for the first time in Seoul. According to the court registration information plaza, 45,920 people who bought a collective building such as an apartment in Seoul in the first half of this year acquired it for the first time in their lives. Among them, the 2030 generation accounted for 29,818, or 60.2% of the total. Just last month alone, of the total 6,229 people, the 2030 generation accounted for 3,725, or 59.8%.

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It is interpreted that the loosening of loan regulations has attracted real demand. From this month, the mortgage recognition ratio (LTV) for homeless people has risen to a maximum of 60-70%. In the past, LTV was 40-50% in regulated areas, but the preferential rate has been expanded to a maximum of 20% points. The standard price of a house mentioned in the regulation is 800 million to 900 million won. However, the maximum amount that can be borrowed is 400 million won, and the house price that receives the most loan benefits is in the range of 600 million to 700 million won.

An official from Dobong-gu, an authorized brokerage official, said, “As loan regulations are eased, young people who have been hesitant due to lack of money are flocking to apartments with low prices. explained.

Apartment prices in Seoul continue to rise. According to the weekly apartment price trend data from the Korea Real Estate Agency, the apartment sale price index in Seoul rose 0.15% in the second week of this month (as of the 12th). This is the 16th consecutive week of increase since recording an increase rate of 0.05% in the fifth week (29th) of March.

The median sales price of apartments in Seoul also exceeded 1 billion won for the first time. According to time series statistics on housing price trends published by KB Kookmin Bank Live Real Estate, the median price of an apartment in Seoul last month was 1,014,17 million won on average. The median price is the price in the middle when the house prices are arranged in order. The average apartment price in Gangbuk was 92.9 million won, which also exceeded 900 million won for the first time.

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Reporter Lee Song-ryeol at Hankyung.com [email protected]

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