"This Year's Top 3 Real Estate Keywords: Limited Pie Market, Only Me, Close and New"

[Asia Economy Reporter Yuri Kim] 'Limited pie market, ONLY ME, Near & New.'

RT Korea Real Estate Investment Advisory and Heerim Comprehensive Architecture Office selected 'Limited Pie Market,' 'ONLY ME,' and 'NEAR & NEW' as the 'Three Major Real Estate Keywords of 2020' on the 14th, and announced the '2020 Real Estate Trend Outlook Report,' which identifies the top 10 real estate trends accordingly.

According to the report, 'Limited Pie Market' refers to a situation where quantitative expansion is restricted due to population and household stagnation and low growth in the construction and real estate industries, leading to intensified competition and a decline in profitability.

'ONLY ME' reflects the trend of apartments changing thoroughly to be family-centered and individual-centered. With work-life balance (WLB) and the 52-hour workweek, the time spent at home has increased, and apartments are becoming customized for consumers. The report expects this trend to continue this year. In particular, private spaces are strictly for oneself and family, reflecting a trend where people choose to 'share' for economic reasons but avoid 'togetherness.'

'NEAR & NEW' captures the preference for proximity between home and workplace and new apartments. The survey conducted in this study showed that respondents' average commuting time was 33 minutes, reflecting the increase in dual-income households and the emphasis on convenient transportation.

Based on this, the ten real estate trends for this year are ▲proximity between home and workplace ▲apartment gentrification ▲new apartments ▲generational differences in space ▲fine dust ▲smart homes ▲complex services ▲de-sectorization ▲proptech ▲functions of the 52-hour workweek.

The report cited the increase in commuting members within families due to more dual-income households and higher marriage ages, and emphasized that proximity between home and workplace is increasingly important for dual-income families for childcare and daily life, identifying it as a trend. Apartment gentrification refers to the ongoing phenomenon of moving from Seoul to Gyeonggi-do for home ownership.

Also, with the establishment of the five-day workweek and the introduction of the 52-hour workweek, the report analyzed that as time spent at home increases, preference for new apartments with superior layouts and facilities grows. It also noted generational differences in space preferences: younger age groups prioritize individuality and convenience even at a cost and prefer shared and common spaces, whereas older age groups seek comfort and safety, are price-sensitive, and prefer to own their own space.

Air purification systems responding to fine dust and the evolution of smart home technologies were also selected as top 10 trends this year. Complex services that assist busy modern people were analyzed to have high demand mainly for time-consuming services (laundry, special cleaning) and specialized services (security, facility inspection, vehicle management, etc.) rather than everyday services.

The report stated, "In a situation where real estate demand is decreasing and investment costs are increasing, the construction and real estate industries in 2020 will accelerate de-sectorization amid fierce competition," and added, "Also, this year, proptech (real estate service industry combining real estate and technology) will emerge in the shared housing service sector targeting single-person households and young people, and offline management, operation services, and diversification of service products will be prominent among young users."

This content was produced with the assistance of AI translation services.