Three Government Benefits for Young People Buying a Home

The current market price is 4 billion won against a sale price of 2.2 billion won, so she is expected to earn a gain of about 1.8 billion won. News of such a high-priced apartment lottery win by a celebrity makes the difficulty of entering the housing market feel very real to many people.

In June this year, Seoul apartment prices recorded their largest increase in five years, rising 2.5% in a single month. A decline in jeonse supply has pushed jeonse prices sharply higher, which in turn is accelerating the shift to monthly rent. Compared with last year, monthly rents have risen by as much as 1.4 million won, adding to the housing cost burden for people who actually live in these homes.

However, mortgage loan regulations remain unchanged from before.

Starting next January, the 'Youth Future Home Loan' will be newly introduced. The product offers an LTV of up to 80% for non-apartment homes priced at 400 million won or less. Notably, even if a buyer later upgrades to an apartment after purchasing a non-apartment home with this loan, the first-time buyer benefits are maintained, a striking condition.

If you buy a home in a promising redevelopment area, you can expect a larger gain over time. Actively investing to seize the chance to buy a home is a wiser strategy than simply hoarding the benefit.

In capital-area regulated zones, the LTV is supported up to 70%, so a 400 million won home allows a loan of up to 280 million won. Income requirements are also capped at 70 million won.

A major advantage of the Youth Future Home Loan is that first-time buyer benefits remain even when upgrading to an apartment. In addition, preferential interest rates apply, so loans can be taken out at low rates and the financial burden is light. Buying a non-apartment home in a redevelopment-planned area using these benefits could be advantageous for securing an apartment membership right later.

This concentration of demand became one factor pushing up prices of small and mid-sized apartments.

In the past, non-apartment homes were relatively cheap mainly in outlying areas, but over the past year, demand for non-apartment homes has grown sharply alongside the rise in the apartment market. Row houses and multi-family homes in major outlying areas of Seoul, such as Yeongdeungpo, Seodaemun, Seongbuk, Yangcheon, and Gangdong, have also surpassed 400 million won. This phenomenon appears mainly in areas with high access to business districts.

Under this benefit, the home is excluded from the housing count when calculating acquisition tax, comprehensive real estate holding tax, capital gains tax, and so on, and it is expected to ease the tax burden on homebuyers.

This policy helps young people buy a small home while not losing future opportunities to subscribe to apartments.

Furthermore, investing in redevelopment and reconstruction areas could even offer a shot at future apartment membership rights, which is drawing attention as a realistic alternative for young people seeking a home in Seoul.

Apartment supply in Seoul is limited and additional supply is difficult, so the value of existing apartments keeps rising. Sale prices are also steadily climbing: in Noryangjin, sale prices have reached 3 billion won, and in other areas such as Jangwi New Town, general sale prices are exceeding 1.5 billion to 1.8 billion won. The surge in labor and material costs has also been a major factor, with construction costs at reconstruction projects exceeding 10 million won per unit.

Young adults in their 20s and 30s are flowing into the non-apartment market in large numbers. The number of non-apartment purchases, which was about 5,000 in 2025, exceeded 8,400 in 2026, an increase of about 67% over the previous year. This is analyzed as reflecting young people's determination to build assets through loan interest repayment rather than bearing the burden of monthly rent. Many young people are choosing non-apartment investment as a long-term homeownership strategy with redevelopment and reconstruction in mind.

Areas near major business districts such as Mapo, Yongsan, Seongdong (the Mapo-Yongsan-Seongdong area), Gangnam, Jongno, and Yeouido are preferred, and whether the area has well-developed infrastructure and commercial districts is also an important consideration. A strategy is needed to get ahead in areas with redevelopment potential within a budget of 400 million won or less.