Last month saw the highest number of first-time homebuyers in a lifetime as many snapped up apartments before housing prices rebounded.
According to court registry data, the number of first-time buyers of apartments and flats reached 37,111 nationwide in October, up 19.6 percent compared from the previous month (31,019). That was the highest so far this year and more than double the figure in the same month of last year (17,087).
In the whole of 2020 there were 545,506 first-time buyers and in 2021 513,208, but that plummeted to just 301,542 last year as apartment sales froze due to high interest rates and homeowners took a wait-and-see approach before selling.
This year the government eased housing loan-related restrictions for those who do not own their home, and their purchases increased from 17,269 in January to over 35,000 last month.
But purchase patterns are changing. Park Won-kap at KB Kookmin Bank said, “With recent increases in construction costs leading to surging housing prices, many people who don’t yet own an apartment are turning to older homes instead of trying to buy brand-new ones.”
It remains to be seen if the trend continues now that the government has taken measures to reduce housing loans while interest rates remain high.
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