Share of Small Apartments in Seoul Transactions Tops 40%...Multiple-Home Owners Sell Them First [Real Estate A to Z]

Last Month, Small Units of 60 Square Meters or Less Accounted for 42.8% of Transactions
Small Units Also Popular in the Subscription Market... 44.9% Competing for Small Apartments
"Multiple-Home Owners Moving to Sell Small, Easily Tradable Units Fir

Apartments in central Seoul. Yonhap News

Small apartments with an exclusive area of 60 square meters or less have come to account for more than 40% of all apartment transactions in Seoul. This is seen as a result of growing preference for smaller units, compounded by tighter mortgage regulations.

According to an analysis on February 20 of the Actual Transaction Price Disclosure System of the Ministry of Land, Infrastructure and Transport, apartments with an exclusive area of 60 square meters or less accounted for 42.8% of all apartment transactions in Seoul last month. Until October last year, the share was only 39.9%, staying below 40%, but it then moved on an upward trend and climbed by 4.9 percentage points to 44.8% in December last year.

Demand for small apartments had remained steady as demographic changes reduced the average family size. However, demand accelerated after the October 15, 2025 measures introduced loan restrictions across all of Seoul. Under these real estate measures, the maximum mortgage amount was capped at 600 million won for apartments priced at 1.5 billion won or less, 400 million won for those over 1.5 billion won and up to 2.5 billion won, and 200 million won for those over 2.5 billion won.

The popularity of small apartments is also evident in the housing subscription market. According to Real Estate R114, among a total of 485,271 applicants for apartment subscriptions in the Seoul metropolitan area last year, about 45%, or 218,047 people, applied for units with an exclusive area of 60 square meters or less. Since Korea Real Estate Board’s Cheongyak Home system began accepting housing subscription applications in 2020, last year was the first time that the number of applicants for small units exceeded that for mid-sized units. In particular, in Seoul, 59.7% of all applicants, or 177,840 people, applied for small units, pushing competition ratios to an all-time high.

The preference for small units also appeared in the primary subscription competition for the first apartment project to be offered for sale in Seoul this year, “Define Yeonhui” in Yeonhui-dong, Seodaemun-gu. The 59-square-meter Type A units posted the highest competition ratio at 66.2 to 1. They were followed by the 84-square-meter Type A units, with a competition ratio of 55.6 to 1. Last year, supply of small apartments in Seoul reached 19,986 units, a 30.8% increase from 15,275 units in the previous year.

The share of small apartments in Seoul’s apartment transactions is likely to rise further due to the temporary suspension of the heavier capital gains tax on multiple-home owners. To avoid the heavier tax, multiple-home owners must dispose of their properties by May 9, 2026, and they are more likely to put small apartments-where demand is strong-on the market first. Although the figures may change because transaction reports can be filed up to 30 days after the contract date, the share of small apartments in Seoul’s apartment transactions from February 1 to 19 was estimated at 45.3%, 2.5 percentage points higher than in the previous month.

Yoon Sumin, Real Estate Specialist at NH Nonghyup Bank, said, “Because of the loan regulations, multiple-home owners are trying first to sell properties that are smaller in size, easier to trade, and have strong demand, which limits the extent of price declines,” adding, “There is also a preference for owning one high-quality home, so many are planning to keep larger units for their own residence.”