Rising Prices for Small Apartments... Growing Interest in Compact Units at 'Dosimyeok Hanyang Sujain Riverpine'

Growing Interest in Small Apartments Centered on Prime Complexes with Excellent Seoul Accessibility

[Partial Perspective of Dosim Station Hanyang Sujain Riverpine]

The value of small apartments under 60㎡ exclusive area is rising due to increased demand driven by demographic changes centered on 1-2 person households and insufficient supply to meet this demand.

According to the '2022 Population and Housing Census Registration Census Results' announced by Statistics Korea on the 27th of last month, single-person households accounted for 34.5% of all households, marking the highest figure, while two-person households recorded 28.8%, showing that the proportion of 1-2 person households exceeds half of the total.

On the other hand, the supply of small apartments to accommodate these households is not keeping pace. Recently, the overall shortage of apartment supply has further intensified the supply-demand imbalance.

According to real estate R114 data on the 12th, the number of small-type units under 60㎡ exclusive area among this year's nationwide pre-sale supply (based on general pre-sale units) was only 12,070 units. The proportion has also decreased, with the share of units under 60㎡ exclusive area in total pre-sale supply dropping from 24.2% in 2020 to ▲22.4% in 2021, ▲17.3% in 2022, and ▲16.4% in 2023 (current basis).

As the situation unfolds, buyers are becoming more active, and competition for small apartment subscriptions is intensifying. According to real estate R114 data, the average subscription competition rate for units under 60㎡ exclusive area in this year's nationwide pre-sale market was 15.43 to 1, more than double the previous year's 6.82 to 1. In Seoul, this concentration phenomenon is even more severe, with the average subscription competition rate for units under 60㎡ exclusive area reaching 64.48 to 1 this year, more than four times higher than the previous year.

In actual contracts, the popularity of small apartments is high, drawing attention to 'Dosimyeok Hanyang Sujain Riverpine,' a development near Dosimyeok Station in Namyangju's city center. The excellent location close to Seoul and the variety of small types ranging from 39㎡ to 45㎡ A·B, and 59㎡ A·B are analyzed as reasons for the concentrated demand, leading to rapid contract signings.

A sales official from Dosimyeok Hanyang Sujain Riverpine explained the recent on-site atmosphere, saying, "There is continuous inquiry from actual demand groups such as 1-2 person households and newlyweds commuting to Seoul, as well as investors seeking rental income. Being located within the Deokso Redevelopment Promotion District, the future value due to surrounding development is highly evaluated, resulting in steady contracts mainly for small types."

The popularity of small apartments is also prominent in the general sales market. According to the Korea Real Estate Board, the transaction ratio of apartments under 60㎡ exclusive area accounted for nearly 41.5% of all apartment sales transactions up to July this year. In Seoul, this figure was even higher at 48.4%.

An industry insider said, "Due to the recovery in the real estate market, rising house prices, and increased pre-sale prices, buyers are increasingly turning their interest to small apartments that reduce price burdens. The decrease in new apartment supply, the increase in 1-2 person households, and the lower entry barriers compared to medium and large apartments are all factors intertwined, so the concentration on small apartments is expected to continue for some time."