[Asia Economy Reporter Choi Dong-hyun] Small apartments with a floor area of 60㎡ or less, mainly inhabited by one- to two-person households, are gaining popularity. As the composition of households changes, transaction volumes are increasing, leading to rising housing prices.
According to the 'Resident Registration Population and Household Status Analysis' compiled by the Ministry of the Interior and Safety on the 20th, as of June, one-person households totaled 8,768,414, accounting for 38.5% of the total 22,791,531 households. Two-person households also accounted for 5,268,211 households, or 23.1%, meaning that one- and two-person households together exceeded 60%, more than half of all households.
The increase in one- and two-person households is also impacting the real estate market. According to the Korea Real Estate Board, nationwide housing sales transactions from January to July this year reached 930,500, an approximately 50% increase compared to the same period last year. In particular, the upward trend was prominent for small apartments classified as 60㎡ or less. During the same period this year, transactions for apartments 60㎡ or less totaled 348,294, accounting for 37% of all transactions. This is a remarkable 72% increase compared to 201,591 transactions during the same period last year.
In terms of sale prices, apartments 60㎡ or less showed a higher rate of price increase than other sizes. According to KB Real Estate data, a 59㎡ unit in 'Cheonan Ssangyong Station Kolon Haneulchae' located in Ssangyong-dong, Cheonan-si, Chungnam, was sold for 305 million KRW (26th floor) in August. This price is 46 million KRW higher than the March sale price of 259 million KRW (23rd floor), marking an approximately 18% increase in five months. In the same complex, an 84㎡ unit, mainly preferred by three- to four-person households, was sold for 342.5 million KRW (3rd floor) in May this year, showing only about a 5% increase compared to the sale price in November last year.
In Bupyeong-gu, Incheon, a 59㎡ unit on the 15th floor of 'Raemian Bupyeong' was sold for 500 million KRW in June. This is 80 million KRW (about 20%) higher than the sale price of a 13th-floor unit of the same size in January this year, which was 420 million KRW. On the other hand, an 84㎡ unit rose only about 9.5%, from 557 million KRW (7th floor) in January to 610 million KRW (8th floor) in June.
An industry insider said, "As one- and two-person households now constitute the largest proportion of all household types, the housing market trend is rapidly shifting towards 'downsizing.' Due to the relatively limited supply compared to the demand for small apartments, they are also being valued for their high scarcity."
As the strength of small apartments continues, interest is also growing in newly launched small apartment complexes.
In Cheonan, Chungnam, Sambutoken is currently selling 'Cheonan Sinbang Samburenaissance.' It benefits from Sinbang-dong in Dongnam-gu, considered a major residential area in Cheonan. More than 60% of the units are 59㎡, providing living spaces tailored for one- to two-person households.
Seohui Construction plans to launch 'Yongin Bopyeong Station Seohui Starhills River Park' in Yongin-si, Gyeonggi-do, later this month. The complex consists of a total of 1,963 units ranging from 52 to 105㎡, with 976 units available for general sale. Notably, 1,423 units are small-sized between 52 and 59㎡, of which 773 units will be supplied to the general public.
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