Competition Rate for Small Apartments 10.74 to 1... Doubled Compared to Last Year
Surpasses Medium-Sized Apartment Transactions for the First Time Since 2008
Small apartments with a net floor area of less than 60㎡ are gaining popularity. This year, the competition rate in the subscription market has nearly doubled compared to the previous year, and the transaction volume has also surpassed that of medium-sized apartments (61~85㎡). This is analyzed to be due to the increase in 1-2 person households and the growing demand for apartments with less burden on the sale price.
The transaction volume and subscription competition rate for small apartments with a net area of less than 60㎡ are increasing, gaining popularity. The photo shows the view of Seoul apartments from 63 Square. Photo by Hyunmin Kim kimhyun81@
On the 12th, Real Estate Info analyzed the subscription competition rate of apartments on the Subscription Home platform and found that the average competition rate for small types under 60㎡ this year was 10.74 to 1. Compared to last year's average competition rate of 5.65 to 1 for under 60㎡, this is about a twofold increase.
Transaction volume has also increased. Last year, the nationwide transaction volume for units sized 41~60㎡ was 121,897 cases, which was higher than the 61~85㎡ units (120,497 cases). This is the first time since 2008 that the transaction volume of 41~60㎡ units surpassed that of 61~85㎡ units.
The popularity of small apartments is interpreted to be greatly influenced by the increase in 1-2 person households. According to the '2023 Administrative Safety Statistical Yearbook' published by the Ministry of the Interior and Safety, the proportion of 1-2 person households in total households increased from 64.2% at the end of 2021 to 65.2% last year, continuing a rising trend for 10 consecutive years.
In particular, last year, single-person households numbered 9,724,256, accounting for 41.0% of all households, making it the largest proportion. On the other hand, the proportion of households with three or more people decreased from 35.7% at the end of 2021 to 34.7% last year, showing a continuous decline.
The popularity of small apartments is expected to increase further. According to the future household projections by Statistics Korea, the proportion of 1-2 person households is expected to reach 67.4% in 2030, 72.4% in 2040, and 75.8% in 2050.
With rising sale prices and increased base interest rates adding to the burden of housing costs, the popularity of small apartments is expected to continue. In particular, recently supplied small housing types feature specialized designs that maximize space utilization, resulting in high consumer satisfaction.
Kwon Il, head of the research team at Real Estate Info, said, “Despite being small, many designs incorporate expanded balconies to secure ample interior space, as well as features like dressing rooms and pantries that maximize space efficiency, which are also factors contributing to their popularity.”
Meanwhile, there are small apartments currently being sold or planned for sale in Seoul and the metropolitan area that are worth attention. First is ‘Eunpyeong Xi The Star’ in Seoul, constructed by GS Construction. It consists of a total of 312 households, and some small housing units (49㎡) are currently being sold. A fixed contract deposit of 20 million KRW is being applied, and full interest-free benefits are provided for the intermediate payments.
‘Uiwang Centline Desiang’ located in Uiwang, Gyeonggi Province, will be launched this month, offering 92 units of 37㎡. In addition, ‘Maegyo Station Pellucid’ in Suwon will offer 31 units of 48㎡, and ‘Trius Gwangmyeong’ in Gwangmyeong will offer 142 units of 36㎡ for general sale.
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