[Practical Finance] After Many Turns, 'Gukminpyeonghyeong' 84㎡ Remains the Top Preference in the Subscription Market

Strong Demand Despite Increase in 1-2 Person Households

Subscription Waiting in Seo-gu, Incheon and Jecheon, Chungbuk

[Asia Economy Reporter Kim Min-young] As the number of 1-2 person households increases, various housing types reflecting diverse demands have recently emerged in the pre-sale market, but the popularity of the national standard size, the 84㎡ exclusive area type, remains strong. The secret to its popularity is a solid demand base. The main demand group in the housing market, the financially capable 30s and 40s generation, prefers the 84㎡ size. Experts advise that, given the ongoing transaction freeze in the real estate market, it is better to challenge the 84㎡ type, which has strong demand and high transaction volume, to catch both the real residence and investment opportunities.

A representative from Real Today said, "Although changes are occurring in the subscription market due to household number changes and policy directions, the preference for the 84㎡ exclusive area remains high," adding, "In fact, it has solid demand and high transaction volume, making liquidity good, and the perception that the 'national standard size' formed throughout the real estate market is good will sustain this popularity going forward."

◆ Prominent Preference for 84㎡ in the Subscription Market in Q1 This Year = According to an analysis by real estate research firm Real Today of data from Korea Real Estate Board's Subscription Home, in the subscription market in the first quarter of this year (excluding pre-subscriptions and based on general supply), the 84㎡ exclusive area type attracted the most applicants with 297,787 (first priority basis). This accounts for 51.85% of total applicants (574,333), higher than △under 60㎡ exclusive area 28.14% (161,599) △60~84㎡ exclusive area 5.15% (29,559) △85~102㎡ exclusive area 7.77% (44,654) △over 102㎡ exclusive area 7.09% (40,734).

Compared to the first quarter of last year, the preference for the 84㎡ type is also prominent. The share of applicants for the 84㎡ type increased by 9.1 percentage points this year compared to last year. Last year's first quarter applicants for this type were 253,300, accounting for 42.75% of total applicants (592,479). Other changes include △under 60㎡ exclusive area increased by 17.19 percentage points △60~84㎡ exclusive area decreased by 10.35 percentage points △85~102㎡ exclusive area decreased by 14.93 percentage points △over 102㎡ exclusive area decreased by 1.01 percentage points. This shows a trend in the subscription market favoring the 84㎡ type aimed at 4-person households or under 60㎡ suitable for single-person households.

In the sales market as well, the 84㎡ type, the national standard size, accounts for nearly one-third of total transactions. According to the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system, the apartment sales transaction volume for the 84㎡ type in the first quarter of this year was 20,133 cases. This is 26.9% of the total apartment sales transaction volume (71,794 cases).

◆ Let’s Take a Look at New Supply Complexes Focused on 84㎡ This Year = Demand is expected to gather for new supply complexes including the 84㎡ exclusive area type this year as well. Hyundai Construction plans to launch ‘Hillstate Bullo Forest’ in Bullo-dong, Seo-gu, Incheon in June. It consists of 8 buildings, 3 basement floors to 25 floors above ground, totaling 736 households. All units are composed of a single preferred exclusive area of 84㎡. The Bullo 2 district where the complex is located is close to Geomdan New Town, allowing residents to enjoy various living infrastructures.

Hyundai Engineering plans to supply ‘Hillstate Yeonggwang’, the first Hillstate-named complex in Yeonggwang, Jeonnam, this month. It consists of 8 buildings, 1 basement floor to 18-20 floors above ground, totaling 493 households, mainly composed of 84㎡ exclusive area units (414 households). There are also 79 units of the rare large 113㎡ exclusive area. Nearby are various green spaces such as Seongsan and Usan Neighborhood Parks, offering a relaxed healing life.

DL Construction plans to supply ‘e-Pyeonhansesang Jecheon The Prime’ in Jangrak-dong 469-14, Jecheon-si, Chungbuk this month. It consists of 6 buildings, 2 basement floors to 29 floors above ground, with exclusive areas ranging from 84 to 116㎡, totaling 630 households. Using Jecheon Station on the Jungang Line (Wonju~Jecheon double-track railway section) opened last year, it takes about an hour to reach Seoul (Cheongnyangni Station).

DL E&C will launch ‘e-Pyeonhansesang Okjeong Leaders Garden’ in block A-24 of Okjeong New Town, Yangju-si, Gyeonggi-do this month. It consists of 14 buildings, 1 basement floor to 27 floors above ground, with 938 households composed of 84㎡ and 99㎡ exclusive areas. Okjeong New Town, where the complex is located, is a large-scale housing development district subject to the price ceiling system. First priority subscription applications are possible from Seoul and the metropolitan area.

Hanshin Construction plans to supply ‘Hanshin The Hue Penthouse’ in Geumnam-ro 3-ga, Dong-gu, Gwangju this month. The complex consists of 2 buildings, 4 basement floors to 25 floors above ground, totaling 99 households with exclusive areas ranging from 84 to 230㎡. Among them, 40 units of 84㎡ exclusive area are the most, and the 163㎡ exclusive area and penthouses are planned as Gwangju’s first ‘two-story house’ structure units. Complexes planned for supply in the second half of the year are also waiting. In August, a large-scale complex with a total of 3,344 households called Vermontro Gwangmyeong is scheduled to be supplied in Gwangmyeong-si, Gyeonggi-do, and in Seoul’s Seongdong-gu Haengdang-dong, a 958-household scale La Cherbo Prugio Summit, and in Busan’s Suyeong-gu Gwang-an-dong area, a 1,237-household scale Gwang-an 2 district housing redevelopment project are planned for supply.