Seoul’s housing market frenzy pushes first-time buyers to 43-month high

Soaring apartment prices across Seoul have sparked a wave of panic buying, with the number of first-time homebuyers reaching its highest level in nearly four years.

According to court registry data, 7,178 first-time buyers purchased collective housing units—including apartments, officetels, townhouses, and multi-family homes—in Seoul last month. The figure marks a 20.3 percent increase from 5,962 in May and is the highest since November 2021, when it reached 7,886. It also marks the first time in 43 months that the number has exceeded 7,000.

Apartment prices in Seoul have been climbing for 23 consecutive weeks since early February. In the city’s three Gangnam districts—Gangnam, Seocho, and Songpa—prices have already risen by 7 to 8 percent this year. The sustained rally has fueled a fear of missing out (FOMO), prompting many buyers to rush into the market amid concerns that prices will continue to soar.

Multiple apartment complexes seen from Namsan in Seoul on July 6, 2025./News1

The frenzy was further accelerated by the looming implementation of the third stage of the stressed debt service ratio (DSR) regulation, set to take effect in July. In June, apartment transactions in Seoul totaled 10,027—the second-highest monthly figure this year, following March’s 10,323. That earlier spike came after authorities re-designated certain areas as land transaction permit zones, a move that typically triggers price hikes in affected districts.

“There was demand from buyers looking to purchase before the stricter DSR rules took effect and before prices climbed further,” said Park Won-gap, senior real estate analyst at KB Kookmin Bank. “To satisfy people’s desire for homeownership and stabilize prices, housing supply measures must keep pace with demand.”

[Lee Mi-ji]

- Copyrights ⓒ 조선일보 & chosun.com, 무단 전재 및 재배포 금지 -