'Stay-at-Home + Subscription + Scarcity'... Growing Interest in Medium-to-Large Apartments

[Asia Economy Reporter Kim Yuri] Recently, interest in medium-to-large apartments with exclusive areas exceeding 85㎡ has been growing. Due to the impact of the novel coronavirus disease (COVID-19), the time spent at home, such as telecommuting, has increased, leading to a rise in demand for larger living spaces. Additionally, factors such as the opportunity given to low-score applicants through lotteries during subscription in major areas, and the scarcity of supply in new apartments have contributed to the heightened attention on medium-to-large apartment sizes.

According to Real Estate 114 on the 8th, as of the 3rd, the first-priority subscription competition rate for medium-to-large apartments nationwide with an exclusive area over 85㎡ was 45.22 to 1, the highest among housing types. This far exceeded the national average competition rate of 24.91 to 1 and was higher compared to 24.76 to 1 for housing types between 60㎡ and 85㎡ and 17.16 to 1 for housing types under 60㎡.

For example, the 'DMC SK View I-Park Foret' 120㎡ Type A, which was sold in Eunpyeong-gu, Seoul in August, recorded an average first-priority competition rate of 1976.75 to 1, and the 'Seodaegu Central Xi' 99㎡, sold in Seo-gu, Daegu in September, also recorded an average first-priority competition rate of around 1200 to 1. Industry experts analyze that these results are due to the increasing scarcity of medium-to-large new apartments. As of the 3rd this year, the general supply volume of medium-to-large apartments over 85㎡ nationwide was 11,192 households, about 9.35% of the total (119,739 households).

The increase in the sales price index for medium-to-large apartments is higher than that for small-to-medium apartments. According to the Korea Real Estate Board, in October this year, the nationwide apartment sales price index was highest for apartments over 85㎡ and up to 102㎡ at 114.5, with a month-on-month increase of 0.66 percentage points, showing the largest rise. This was followed by apartments over 135㎡ at 110.2 (0.66 percentage points), and apartments over 102㎡ up to 135㎡ at 109.6 (0.55 percentage points). In September, the average sales price of medium-to-large apartments in northern Seoul surpassed 1 billion KRW, while in Gangnam it jumped to 1.5 billion KRW, highlighting a notable price increase. The average sales price of medium-to-large apartments in Seoul was 1,296.24 million KRW, rising more than 400 million KRW compared to three years ago (850.99 million KRW).

Experts believe that due to the government's regulatory balloon effect, prices of small-to-medium apartments have surged significantly, leading demand to shift toward medium-to-large apartments, which offer relatively more space but lower price per pyeong. Additionally, the COVID-19 impact has increased the time people spend at home, further boosting demand for larger homes.

Interest is also growing in the upcoming supply of apartments including medium-to-large sizes. Lotte Construction is currently selling 'Yeongtong Lotte Castle L-Class' in Mangpo-dong, Yeongtong-gu, Suwon-si, Gyeonggi-do. As a result of the first-priority subscription, the 107㎡ Type A recorded the highest competition rate at an average of 113.62 to 1. Block 1 of the complex consists of up to 20 floors above ground, 8 buildings, and 642 households ranging from 84 to 107㎡, while Block 2 consists of up to 17 floors above ground, 9 buildings, and 609 households ranging from 79 to 107㎡. Medium-to-large sizes include 77 households of 107㎡ Type A and 49 households of 107㎡ Type B.

HDC Hyundai Development Company and Lotte Construction are launching sales for 'Banjeong I-Park Castle.' It consists of two complexes with a total of 2,364 households, ranging from basement 3 floors to up to 19 floors above ground, 34 buildings, and sizes from 59 to 156㎡. Medium-to-large sizes supplied include 2 households of 103㎡, 124 households of 105㎡, 2 households of 112㎡, 3 households of 119㎡, 3 households of 121㎡, 7 households of 130㎡, and 2 households of 156㎡.

Hyundai Engineering plans to sell the residential complex 'Hillstate Gamsam Central' in Gamsam-dong, Dalseo-gu, Daegu in December. The complex consists of 3 buildings, ranging from basement 5 floors to up to 45 floors above ground, with 393 apartments sized 84 to 175㎡ and 119 officetel units sized 84㎡. GS Construction plans to sell 'Jungsan Xi' in Jungsan-dong, Gyeongsan-si, Gyeongsangbuk-do in November. Jungsan Xi consists of Complex 1 with 8 buildings, 74 to 117㎡, 1,144 households, and Complex 2 with 3 buildings, 96 to 117㎡, 309 households.

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