An apartment complex in Jamsil, eastern Seoul. (Yonhap)
SEOUL, March 10 (Korea Bizwire) — With the growing number of single-person households in South Korea, the real estate market is also seeing more and more residential complexes supplying small-sized apartments.
The market is reducing some of the traditionally popular medium- and large-sized units and expanding the supply of small ones.
The number of family members per household dropped from 2.53 in 2011 to 2.31 in 2019, according to data from Statistics Korea.
In addition, the ratio of single-person households also nearly doubled over the past 20 years, from 15 percent in 2000 to 29.3 percent in 2019.
As a result, the popularity of small apartments is increasing.
In the case of an apartment complex in Gangnam District, which Lotte Engineering & Construction Co. sold in lots in November last year, the competition rate was 212 to 1 at the time.
The complex was comprised of small and medium-sized units between 55 and 77 square meters.
In addition, other new construction projects are also featuring a variety of apartment sizes ranging from small to large.
A massive 12,000-unit development in Gangdong District, Seoul, which is scheduled to go on sale in April, is composed of variety of apartments ranging in size from 29 square meters to 167 square meters.
The popularity of small residential facilities is also seen in officetels – multipurpose buildings with both residential and commercial units.
A new officetel building constructed by Hyundai Engineering Co. in the same area that went on sale in December of last year had a competition ratio of up to 17.53 to one, with all units quickly selling out.
The complex consists of small officetels between 17 and 30 square meters in size, and 182 units were available.
With the recent rise in the popularity of small-sized apartments, the Ministry of Land, Infrastructure and Transport also announced plans to supply public housing in line with the increase in single-person households and changes in residential trends through this year’s business plan.
Kevin Lee (kevinlee@koreabizwire.com)
