- Low Price Burden Attracts 1-2 Person Households
- Shortage Worsens Amid Strong Sales Market
Small apartments with a net area of 60㎡ or less are gaining popularity in the Seoul metropolitan area. Compared to medium and large-sized units, they are less financially burdensome, and with the increase in 1-2 person households, demand and transaction volumes are rising, leading to price increases.
The number of single-person households in South Korea surpassed 5.6 million in 2017, up from 5,203,440 in 2015, and reached 6,148,000 in 2019. Among these, the proportion of single-person households in the Seoul metropolitan area?Seoul (21.1%), Gyeonggi (21.0%), and Incheon (4.8%)?is 46.9%, nearly half of the total. Statistics Korea expects the number of single-person households to continue increasing, accounting for about 35.22% (7,922,862 households) of all households by 2035.
The rise in single-person households is driving the popularity of small apartments in the housing market. In January this year, the ‘Pangyo Valley Ja-i 2nd Complex’ in Seongnam, Gyeonggi Province, with a net area of 60㎡B, recorded a first-priority average competition rate of 101.6 to 1. In November last year, the ‘Banjeong I-Park Castle 5th Complex’ in Hwaseong, Gyeonggi Province, with a net area of 59㎡B, also had a high first-priority average competition rate of 28.06 to 1.
Advances in floor plans and design have also contributed to the popularity of small apartments. Recently, even small units have increased storage space and diversified built-in facilities, enhancing space utilization.
An industry insider explained, "As small households such as single-person households are expected to steadily increase, demand for small apartments is likely to grow. Also, small units tend to be less restricted by recent loan regulations compared to medium-sized units."
Meanwhile, the regional housing cooperative apartment ‘Taepyeong Hills One’ in Seongnam, Gyeonggi Province, has successfully completed the first round of member recruitment and is currently recruiting the second round of members.
The complex is nearing the final stages of selling small types such as 59㎡A and 59㎡B. The 74㎡ and 84㎡ types have already closed member recruitment.
Taepyeong Hills One offers easy access to Taepyeong Station, Sinheung Station, Seongnam-daero, Bundang-Suseo Expressway, and the Seoul Outer Ring Road, allowing residents to enjoy the Gangnam and Songpa living zones. It also boasts abundant living infrastructure including convenience facilities in Wirye New Town, E-Mart, Seongnam Medical Center, Sujeong District Office, and welfare centers.
Taepyeong Hills One is expected to become a large branded apartment complex in the future. With ‘Sanseong Station Forestia’ (4,089 households) and ‘Jaipurujio’ (4,774 households) nearby, this area is anticipated to transform into a branded apartment town.
Following the amendment of the Housing Act on July 24, it is possible to withdraw from the membership contract within 30 days after joining the regional housing cooperative, and paid membership fees can be refunded, reducing the burden.
The project is proceeding by attracting about two-thirds of the total recruited members as landowner members, which reduces financial costs compared to traditional methods. Currently, the landowner consent rate is very high, and the rate of landowners directly joining as members is also high, speeding up the project progress.
The Taepyeong Hills One housing promotion center is located in Yongin City and can be visited by prior reservation.
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