A sign at Seoul Southern District Court in Yangcheon District, western Seoul, points to the property auction courtroom.KIM JEONG-JAE
An increasing number of people in their 30s are bypassing real estate offices in their pursuit of homeownership, turning instead to court auctions as rising home prices and tight credit make discounted properties more appealing.
A JoongAng Ilbo analysis of Supreme Court registry data on Monday found that 920 of 2,743 buyers, or 33.5 percent, were in their 30s, more than any other age group. The tally combines compulsory auctions and auctions held to enforce security rights.
Dozens of bidders crowded the auction courtroom at Seoul Southern District Court in Yangcheon District, western Seoul, at 10 a.m. Thursday. An office worker identified by the pseudonym Kim Jin-sik was among them.
“Home prices are rising so fast, and getting a loan is not easy,” Kim said. “I was frustrated, so I came to see whether I could buy at auction.”
Kim had done more than browse the listing before taking the morning off work.
"I told my company I was taking the morning off," Kim said. "I visited an apartment in Hwagok-dong, Gangseo District, that was up for auction and checked the neighborhood and nearby businesses, so I really hope to win the bid."
Another bidder, a man surnamed Lee, arrived holding his 4-year-old son's hand.
"A coworker told me last year that they had gotten lucky and bought an apartment cheaply," Lee said. "I've been coming to court often ever since. There seem to be many more young people lately, and I sometimes see entire 'auction study groups' come to court to learn."
Several newlywed couples came only to observe. Auction information services employees worked the crowd.
"Subscribe to our bulletin and we'll recommend good listings and analyze the right bid price," they told visitors.
A property auction information bulletin picked up at Seoul Southern District Court in Yangcheon District, western Seoul.KIM JEONG-JAE
Real estate agents have noticed the shift as well.
"The auction market used to be seen as an investment outlet for middle-aged and older people and owners of multiple homes," a licensed real estate agent in Gangseo District, western Seoul, said. "Now younger people and those without a home appear to be taking over. Most of them plan to live in the properties themselves."
Posts on real estate forums and social media reflect the trend.
“I went to the auction pushing a stroller while my husband was at work,” one post read.
Rising apartment prices and a shortage of new homes have added urgency. The Korea Real Estate Board's average-price series put the sale price of a Seoul apartment at 1.33 billion won ($900,000) in May, 3.1 percent above the 1.29 billion won recorded in December. The May figure was the first to exceed 1.3 billion won since the series began.
Apartment jeonse, or lump-sum deposit, prices in Seoul have risen for 75 consecutive weeks since the first week of February 2025. The Construction and Economy Research Institute of Korea forecast on June 18 that the rise could accelerate in the second half. It projected a 1.5 percent gain over those six months, after a 1 percent rise in the first half.
A person looks at property listings outside a real estate agency in Seoul on July 17.NEWS1
A bidder surnamed Nam was among those at Seoul Eastern District Court in Songpa District, southern Seoul, on Monday.
"There will be almost no new supply over the next three years, and my chances of securing an apartment through the subscription system are slim," Nam said. "Auctions seem like the only alternative because they allow gap investment. I will keep bidding until I win one."
Gap investment involves buying a home with a jeonse tenant already in place and using the tenant's deposit to finance part of the purchase.
Experts warn that an attractive winning bid can conceal costly legal complications. Buyers who enter without fully examining a property's occupants and legal rights may inherit financial obligations.
Claims of nonexistent liens are a recurring source of disputes. Supreme Court figures show that 1,134 lawsuits seeking declarations that claimed liens did not exist were filed between 2021 and June 2025, or roughly 200 a year.
A valid lien can survive a court sale. The buyer may have to resolve the underlying claim before taking unencumbered possession of the property.
"Auctions involve thousands of different scenarios, and even experts often struggle to reach a definitive judgment," said Yoon Ji-hae, head of the research lab at real estate information provider R114. "People in their 30s who have only just begun studying real estate could run into trouble if they focus only on price. They may have to assume the obligation to return a tenant's deposit or become involved in a lien dispute."
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
