From January to May of this year, the number of studio apartments that were between 21 to 40 square meters in size on the market accounted for 4,814 of the total of 8,244 studios, representing 58.4 percent of the total, according to property research firm Real Today.(Image: Kobiz Media)
SEOUL, June 16 (Korea Bizwire) – Amid growing numbers of single households in South Korea, small-sized studio apartments are proving particularly popular, accounting for nearly 60 percent of all studio apartments in Seoul and the surrounding areas sold in the market this year.
From January to May of this year, the number of studio apartments that were between 21 to 40 square meters in size on the market accounted for 4,814 of the total of 8,244 studios, representing 58.4 percent of the total, according to property research firm Real Today.
Industry experts say the rise of small-sized studio apartments is reflective of the rising number of single and two-person households across the age spectrum who naturally prefer to buy a smaller and more affordable home, given the high housing prices in the country that discourage many South Koreans from getting on the property ladder.
The number of single and two-person households rose 22 percent between 2010 and 2015, according to Statistics Korea.
During the first five months of this year, studio apartments of a different size, including ones between 41 to 60 square meters and those smaller than 20 square meters in size accounted for 15.8 percent and 10.7 percent, respectively, of real estate transactions, the research firm revealed after analyzing data on actual housing transactions gathered by the Ministry of Land, Infrastructure and Transport.
Middle-sized and large studio apartments in contrast were met with a lukewarm response from the property market over the same period, as the figures show those between 61 to 85 square meters and those over 111 square meters only accounted for 8.6 percent and 2.4 percent of sales, respectively.
This year’s trend towards smaller studio apartment in the housing market is the continuation of a similar trend that has been observed by industry experts over the last five years.
Just like existing homes on the market, similar trends were observed among newly built small studio apartments.
In April, South Korean builder Daelim experienced growing public interest in smaller types of studio apartments as the 38-square meter type proved most popular, attracting a high number of applicants.
Hyunsu Yim (hyunsu@koreabizwire.com)
