[비즈한국] Despite the government's sweeping real estate loan regulations, the proportion of people purchasing homes for the 'first time in their lives' has reached an 11-year high. Although loan barriers were significantly raised through the Lee Jae-myung administration's June 27 and October 15 measures last year, home purchases by first-time buyers increased due to the relative benefits provided to them.
30,000 First-Time Buyers in Their 30s
According to the Supreme Court's Registry Information Plaza, the number of first-time buyers of collective housing in Seoul exceeded 60,000 last year, accounting for 38% of all collective housing transactions in Seoul. This is the highest figure in approximately 11 years since recording 39.1% in 2014. While the real estate market froze last year due to consecutive real estate regulatory policies, the relative proportion of first-time purchases actually increased.
Home purchases by people in their 30s also rose. Among first-time collective housing buyers in Seoul last year, those in their 30s accounted for more than 30,000, representing nearly half of the total. This has sparked various interpretations. While some critics argue that the instability of home prices is actually fueling purchases by those who do not own homes, others analyze that the age bracket capable of purchasing homes in Seoul has lowered.
The June 27 measure announced by the government last year limited the maximum amount for mortgage loans for living stability purposes using existing homes in the metropolitan area and regulated areas as collateral to 100 million won in the name of household debt management. It also banned loans for jeonse (lump-sum housing lease) conditional on ownership transfer and limited credit loan caps to within 1-2 times of annual income.
Except for policy loans, the total household loan target for all financial institutions was reduced to half of the original plan starting from July 2025, and policy loans were reduced by 25% compared to the annual supply plan.
The issue is that even though it was in the name of household debt management, the 'Didimdol' and 'Burtimmok' loans, which are loan policies for common citizens, were also included in the regulations. The general Didimdol loan was reduced from the existing 250 million won to 200 million won. Regulations were also applied to first-time buyers. The loan limit, which was originally 300 million won, was reduced to 240 million won. The special benefit for newlyweds was reduced from 400 million won to 320 million won, and the special benefit for newborns from 500 million won to 300 million won.
When the government regulated loan policies for commoners in the name of household debt management, the opposition party immediately criticized it. Last June, Choi Soo-jin, floor spokesperson for the People Power Party, criticized, "If the Lee Jae-myung administration continues to unleash half-baked policies centered on populist supplementary budgets and loan regulations, it will inevitably lead to exacerbated market chaos and a second real estate explosion." People Power Party spokesperson Park Min-young pointed out, "Is the direction of the Lee Jae-myung administration's real estate policy to make it so that only the cash-rich can buy homes, further fueling the widening gap between the rich and the poor?"
In the October 15 measures, all 25 districts in Seoul and 12 locations in Gyeonggi-do were bundled into regulated areas such as adjustment target areas, speculation-overheated districts, and land transaction permit zones. Accordingly, loans were also tightened. The Loan-to-Value (LTV) ratio for non-homeowners was tightened from 70% to 40%, and loans were banned for those who already own homes.
However, first-time buyers can still get loans in regulated areas when purchasing homes priced at 1.5 billion won or less, with an LTV of up to 70% and a Debt-to-Income (DTI) ratio of up to 60%, within a limit of 600 million won.
Experts: "Conditions for Home Ownership Have Not Improved"
Since the loan restrictions for first-time homebuyers are relatively loose, their share of purchases has increased. Experts say it is difficult to view this as a positive influence.
Kim In-man, head of the Kim In-man Economic Real Estate Research Institute, says that the proportion of home purchases by people in their 30s has increased relatively as home purchases by other age groups have decreased. Kim analyzed, "People in their 30s, who have a relatively high number of non-homeowners, are buying homes because they can at least receive first-time purchase benefits. I believe purchases have increased because there is high anxiety about the future and they anticipate more regulations ahead. Since the government is implementing loan regulations and tax regulations simultaneously, overall real estate transactions are expected to decrease further.”
Park Won-gap, a senior real estate expert at KB Kookmin Bank, pointed out, "It is dangerous to interpret the trend of more young people buying apartments in Seoul as a sign that conditions for home ownership have improved. Those in their 30s are not an average value; polarization is occurring within the same age group. Even within the same generation, people are being split extremely depending on their asset accumulation."