This Year’s Medium to Large Apartment Sales Hit 7-Year Low... Increasing Scarcity

Perspective view of 'Songdo Xi Crystal Ocean' in Yeonsu-gu, Incheon (Provided by GS Engineering & Construction)

[Asia Economy Reporter Lee Chun-hee] This year, the supply of medium-to-large apartments (over 85㎡ exclusive area) has recorded the lowest level in seven years. As their scarcity increases, their popularity in subscription and sales markets is also rising.

According to Real Estate 114 on the 9th, the supply of medium-to-large apartments this year until last month was only 16,190 units, the lowest in seven years since 33,033 units in 2014. The supply of medium-to-large apartments has been decreasing annually since 2014, with a brief rebound to 19,187 units last year, but it is declining again this year.

However, in speculative overheated districts, 100% of small-to-medium apartments (85㎡ or less) and 50% of medium-to-large apartments are supplied through a point-based subscription system, and as the point-based supply expands, for low-score applicants and homeowners, medium-to-large supply is the only way to aim for winning, causing subscription competition rates to soar inversely.

Last month, 'Gam-il Prugio Markver' in Gam-il District, Hanam City, Gyeonggi Province, which was supplied with an average competition rate of 405 to 1, saw 57,079 applicants for 99 units of the 114㎡A type, recording a high competition rate of 577 to 1. On the same day, 'Sejong Hanlim Pulever' in Sejong also recorded a competition rate of 343 to 1 with 686 applicants for only 2 units of the 136㎡ type. This is more than twice the average competition rate of 153 to 1 for the complex.

Large-sized apartments have also shown strength in the sales market after supply. According to KB Kookmin Bank's monthly housing price trend on the same day, the average sales price of large apartments (over 135㎡) in Seoul last month was 2.1077 billion KRW, surpassing 2 billion KRW for the first time. It has been three months since it exceeded 2 billion KRW in August at 2.02692 billion KRW. Compared to 1.86202 billion KRW in November last year, it rose 13.2% in one year.

The industry attributes the popularity of these medium-to-large sizes to market conditions. Recently, due to the increase in 1-2 person households and high liquidity, supply has focused on small-to-medium sizes rather than medium-to-large sizes, increasing the scarcity of medium-to-large sizes. Additionally, with the recent spread of COVID-19, as homes need to serve various functions such as rest, work, study, and leisure, demand for larger homes is rising.

An industry official said, "Medium-to-large sizes, once neglected, are gaining popularity due to a combination of scarcity, COVID-19, and the 'smart one-home phenomenon.' Since there are not many complexes supplying medium-to-large sizes in the year-end supply market, the high competition rate is expected to continue."

Anrak Switchen Night View Perspective (Provided by KCC Construction)

GS Construction will supply 'Songdo Xi Crystal Ocean' in A10 Block, Songdo-dong, Yeonsu-gu, Incheon, this month. It is planned as a complex of 1,503 units ranging from 84 to 205㎡, with 42 floors above ground and one basement floor. The central plaza (tentative name) within the complex connects to the planned Landmark City waterfront park, providing a pleasant residential environment. Additionally, the sky bridge community (sunset lounge, book salon, etc.), introduced for the first time in Songdo, will offer refreshing sea views.

In Dongnae-gu, Busan, KCC Construction is launching sales for 'Anrak Switzen.' It is a residential-commercial complex with two buildings, 234 units in total, ranging from two basement floors to a maximum of 37 floors above ground. Among them, 220 apartment units are supplied, consisting of 186 units of 84㎡ and 34 units of 101㎡. It is evaluated as a prime location enjoying both the central living area of Dongnae-gu and the infrastructure of Centum City, and it is an ultra-station area complex located within 250 meters walking distance from Anrak Station on the Donghae Line.

In Cheongju, Chungbuk Province, HDC Hyundai Development Company is supplying 'Gagyeong I-Park Phase 5.' It consists of 8 buildings, 925 units ranging from 84 to 116㎡, with 29 floors above ground and two basement floors. Together with the previously supplied I-Park Phases 1 to 4, it will form a total of 3,678 units of the I-Park brand town. It is evaluated as having abundant living infrastructure in the central living area, and as a medium-to-large size, it features spacious space design with innovative medium-to-large layouts such as 4-5 bays and alpha rooms.

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