Generation MZ’s 'villa body-tech' strategy drives non-apartment purchases up 95% in two years

#. A man in his 30s, identified as A, is renting a home on a jeonse lease in Seoul. With marriage approaching, he is looking into buying a villa in a redevelopment zone to pursue a reconstruction 'body-tech' strategy. The areas he is considering include Jayang-dong and Guui-dong in Gwangjin District, where Moa Town projects are actively being promoted, as well as Heukseok-dong in Dongjak District and Myeonmok-dong in Jungnang-gu. He worries it may take some time, but decided to move ahead because he believes he cannot afford an apartment in Seoul otherwise.
As apartment prices in Seoul have surged, more members of Generation MZ are turning to redevelopment-driven body-tech strategies. Since their current finances do not allow them to buy an apartment right away, they are choosing to move into non-apartment housing and accept the high level of uncertainty. By age group, the increase has been especially pronounced among people in their 30s, the age bracket in which marriage is most common.
An analysis of data from the Korea Real Estate Board (KREB) on the 6th showed that non-apartment purchases in Seoul by people in their 20s and 40s, including those in their 20s and younger, totaled 11,252 in the January-May period this year. That was up 95% from 5,769 in the same period two years earlier. It also marked a 65% increase from 6,821 last year. Non-apartment housing here includes villas, multi-family and row houses, multi-household homes and detached houses, but excludes officetels.
The growth rate over the past year has been particularly notable. From January to May 2024, the increase in non-apartment purchases by this age group was only 18.2%, but over the past year it has risen more than threefold. By age group, the 30s recorded the highest three-year growth rate at 120%.
The main reason younger buyers are rushing into non-apartment purchases is seen as a homeownership strategy centered on redevelopment. Kim Deok-rye, director of the Housing Research Office at the Housing Industry Research Institute, explained, "As home prices keep rising, purchases are increasing mainly among people in their 30s because they think, 'It may be inconvenient now, but if I hold out for 10 to 15 years, I can get an apartment.'" She added, "With a limited supply of apartments in Seoul and concerns that a chance to subscribe for a new unit may never come their way, they are seizing these opportunities." In fact, buying interest has been concentrated in areas where redevelopment projects are active.
kjh0109@fnnews.com Kwon Jun-ho Reporter