'Premium Small Housing' Popular Near Seoul Business District

Sewoon Prugio Hericity Bird's-eye View

[Asia Economy Reporter Donghyun Choi] Ultra-small housing units priced close to 1 billion KRW are on the rise, centered around Seoul's main business districts such as Gangnam, Gwanghwamun, and Yeouido. With one in three households being single-person households, the population living alone is increasing, leading to high demand for expensive ultra-small housing primarily in areas with a high proportion of high-income professionals.

In particular, in central Seoul, land for housing construction is scarce and the proportion of single-person households is high, so the 'new home' premium plays a bigger role than preferences based on types of real estate such as apartments, officetels, or urban lifestyle housing.

According to the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system on the 4th, the ‘Samsung-dong Hillstate 1 Complex’ in Samseong-dong, Gangnam-gu, with an exclusive area of 31㎡, first entered the 1 billion KRW price range in June last year when it was sold for 1 billion KRW. By November, the price rose to a maximum of 1.145 billion KRW. The ‘Helio City’ in Garak-dong, Songpa-gu, with 39㎡, was traded for 975.7 million KRW in July last year. In the northern part of Seoul, the ‘Gyeonghuigung Xi 4 Complex’ in Gyobuk-dong, Jongno-gu, known as the leading apartment, was traded for 828 million KRW in December last year and 825 million KRW in March this year, approaching the ultra-small 1 billion KRW club.

As the value of high-end ultra-small housing continues to rise, the subscription market is also closing with high competition rates. The 'Brighton Yeouido' officetel, supplied last year in Yeouido with 849 units ranging from 29 to 59㎡, recorded a high average competition rate of 26.46 to 1 with 22,462 subscription applications at a price of about 40 million KRW per 3.3㎡. The 'Ssangyong The Platinum Seoul Station' officetel, launched in Jungnim-dong, Jung-gu, Seoul, in February, also showed an average subscription rate of 4.2 to 1 and a maximum of 91 to 1 for 576 units ranging from 17 to 32.74㎡. It also set a record of 100% sold out within a week of the contract start. An industry insider explained, "Usually, ultra-small housing is perceived as income-generating real estate that earns monthly rent rather than capital gains like apartments, but if it is in the heart of Seoul, its scarcity is high, making it a valuable investment. Especially if it is a branded product from a major construction company, it has better community facilities and design than existing housing, so there is a large waiting demand for monthly rent, and there is also a considerable real demand, which is rare for ultra-small products."

Supply in the ultra-small housing market is also pending this month. A notable place is the Sewoon redevelopment project, which has waited 14 years in Seoul's representative central business district. The area around Jung-gu, where the units will be supplied, has a single-person household ratio approaching 50%, and it is considered a core area of business and commerce directly connected to northern Seoul centers such as Gwanghwamun, Euljiro, and Myeongdong, increasing its value.

The first start of the Sewoon district supply was Daewoo Construction's ‘Sewoon Prugio Hericity,’ which opened its model house on the 29th of last month. Located in Inhyeon-dong 2-ga 151-1 area, Sewoon 6-3 district, Jung-gu, Seoul, this complex will be a mixed-use building with 614 units ranging from 24 to 42㎡, from 9 basement floors to 26 above ground. The detailed composition includes 281 apartments and 293 urban lifestyle housing units, with the urban lifestyle housing units being offered first this time. Since this supply is urban lifestyle housing, no subscription savings account is required, and both individuals and corporations can apply. Also, the units supplied this time are above the 16th floor, offering excellent views, with some units having views of Namsan. The sale price ranges from 400 million to 500 million KRW per unit.

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