As the number of 1-2 person households living in Seoul has significantly increased, the popularity of small residential spaces that can accommodate them is rising day by day. In Seoul, transactions of ultra-small apartments with an exclusive area of less than 40㎡ have surged, and in some areas, prices have exceeded 1.5 billion KRW, where loans are completely unavailable.
With the sharp increase in 1-2 person households, the proportion of transactions for ultra-small apartments under 40㎡ in Seoul has also grown significantly. According to the Korea Real Estate Board’s apartment sales transaction status by transaction size, from January to April this year, 1,173 apartments with an exclusive area of 40㎡ or less were sold in Seoul, accounting for 21.15% of the total transactions (5,545).
Given this situation, in some highly preferred areas by buyers, ultra-small apartments under 40㎡ are being sold at prices exceeding 1.5 billion KRW, where loans are completely prohibited.
According to the Ministry of Land, Infrastructure and Transport’s real transaction price disclosure system, ‘Trimage’ with an exclusive area of 35㎡ located in Seongsu-dong, Seongdong-gu, Seoul, and ‘Samsung Hillstate 2nd’ with an exclusive area of 40㎡ located in Samseong-dong, Gangnam-gu, Seoul, are being traded at high price levels.
An industry insider said, “Recently, the number of 1-2 person households in Seoul has greatly increased, and their income levels have also risen, leading to actual transactions of ultra-small apartments priced at 1.5 billion KRW, which hit the loan prohibition threshold.” He added, “However, the currently supplied ultra-small apartments in Seoul are difficult to meet the expectations of 1-2 person households, so high-end residential spaces supplied in major areas of Seoul are replacing that role.”
Amid this trend, in the Ilwon area of Mapo-gu, Seoul, a small residential product equipped with differentiated specialized design, luxurious finishing materials, and excellent location conditions is attracting attention.
‘Belive The Able,’ developed in the Baekbeom-ro area of Mapo-gu, Seoul, will be constructed as a single building with 6 basement floors and 23 above-ground floors, comprising 299 urban lifestyle housing units (including rental) and 34 officetel units.
Internally, it is composed of medium-small sizes ranging from 38 to 49㎡ exclusive area to accommodate the recently sharply increased 1-2 person households, and applies a ceiling height of 2.6m, which is 30cm higher than general apartments, maximizing the sense of space and openness. Additionally, high-end living brands such as the famous German furniture brand ‘Nolte’ and the Italian faucet brand ‘Gessi’ are applied throughout to add a touch of luxury.
A private community space will also be created. An entire floor is allocated as community facilities for residents, filled with a fitness center equipped with private shower rooms, screen golf, private offices divided into independent spaces, and lounges where residents can enjoy rest and leisure.
The financial burden on contract holders has also been greatly reduced. ‘Belive The Able’ allows mid-term payment loans and even offers interest-free benefits on mid-term payments. Furthermore, it has the advantage of a ‘service area’ added like apartments, making the perceived area larger compared to other products such as officetels.
A sales representative for Mapo’s ‘Belive The Able’ said, “Depending on the type, the service area can reach up to 5.99 pyeong (19.8㎡), providing the advantage of using a wider space,” and added, “We also offer free balcony expansion and full-option free provision, which is receiving positive responses from real demand buyers of 1-2 person households.”
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
