Tiny Houses Ignored in Market... Account for Half of Unsold Units in Seoul

7,719 Unsold Houses in September... 343 Units Are 40㎡ or Less
Sharp Increase from 48 Units at the End of Last Year
Impact of High Sale Prices... "Subscription Market Sees Mixed Fortunes by Area"

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyemin] Ultra-small housing units with exclusive areas not exceeding 40㎡ are being overlooked in the Seoul real estate market. This is due to the high sale prices set during the real estate boom, and since the demand for actual residence is relatively low, concerns are rising that the number of unsold units may increase further.

According to the Seoul Real Estate Information Plaza as of the end of September, the total number of unsold units in Seoul was 719. This represents a 17.8% increase compared to the previous month (610 units). Breaking it down by area, the number of unsold ultra-small housing units under 40㎡ was 343, accounting for nearly half of the total. This is a 28.4% increase from the previous month (267 units), showing a larger growth rate than the overall figure. Considering that there were only 48 units at the end of last year, this marks an approximately eightfold surge in nine months.

Expanding the range to units between 40㎡ and 60㎡, the total unsold units in September reached 596, comprising the majority of Seoul's unsold inventory. Unsold units sized between 60㎡ and 84㎡ were 121, and those exceeding 84㎡ were counted as 2 units.

The sharp increase in unsold ultra-small units is attributed to urban lifestyle housing and officetels priced at high sale prices. In particular, in September, all 41 units in Yongsan-gu failed to sell, resulting in a large number of unsold units. The sale prices were set as high as 895 million KRW for units with exclusive areas of 26 to 29㎡.

Similarly, the urban lifestyle housing "Villib The Able" supplied in Nogosan-dong, Mapo-gu, saw 245 out of 256 units remain unsold. These are small units ranging from 38 to 49㎡, with sale prices set between a minimum of 780 million KRW and a maximum of 1.3 billion KRW. Urban lifestyle housing is not subject to sale price controls, and construction companies have been rushing to release such products over the past two years. At that time, despite the high prices, buyers believed that housing prices would continue to rise, leading to a "blind subscription" trend and quick sellouts. However, as the market entered a downturn, these units have been the first to take a direct hit.

There are concerns that the number of unsold ultra-small units may increase further. Given that these units are more often purchased for investment rather than actual residence, they are susceptible to the current sluggish real estate market, especially the rental market atmosphere. Kyunghee Yeo, Senior Researcher at Real Estate R114, stated, "Unlike the past Seoul subscription market where units sold out as soon as they were released, competition rates now vary by area, with mixed outcomes. This trend may deepen going forward."

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