"Loan Interest Rates Are High... Small Apartments Are the Trend in Seoul"

Last Year Purchase Share Surpasses 55%
Seongbuk-gu Highest at 74.5%
Gyeongjemanlab "Low Interest Burden Lowers Entry Barriers"

[Image source=Yonhap News]

[Asia Economy Reporter Onyu Lim] The proportion of small apartments purchased in Seoul last year reached an all-time high.

On the 11th, real estate information provider Kyeongjemanlab analyzed the apartment sales status by size from the Korea Real Estate Board. From January to November last year, out of a total of 14,383 apartment sales in Seoul, 7,947 were for apartments with an exclusive area of 60㎡ or less.

The share of small apartments in total apartment sales in Seoul was 55.3%, the highest figure since the Korea Real Estate Board began compiling related statistics in 2006 (based on January to November data).

The proportion of small apartment purchases has increased for five consecutive years: ▲36.6% in 2017 ▲36.9% in 2018 ▲41.0% in 2019 ▲42.2% in 2020 ▲46.4% in 2021, continuing through last year.

Among the 25 autonomous districts in Seoul, Seongbuk-gu had the highest proportion of apartment purchases under 60㎡, accounting for 74.5%. Other districts included Geumcheon-gu at 71.8%, Nowon-gu 70.3%, Guro-gu 69.2%, Jongno-gu and Jungnang-gu both at 69.1%, Jung-gu 64.2%, Yeongdeungpo-gu 60.0%, Dongdaemun-gu 58.1%, and Dongjak-gu 57.5%.

Hwang Hansol, a research fellow at Kyeongjemanlab, said, "Although apartment prices continue to decline, many are choosing small, low-priced apartments with relatively low entry barriers due to the burden of loan interest repayments. As one- to two-person households increase, the trend of small apartments leading the market is expected to continue for some time."

Meanwhile, Yongsan-gu had the highest proportion of purchases of large apartments exceeding 135㎡. From January to November last year, out of 282 apartment sales in Yongsan-gu, 73 were for apartments over 135㎡, accounting for 25.9%. This was followed by Seocho-gu at 12.1%, Gwangjin-gu 10.1%, Songpa-gu 9.6%, and Gangnam-gu 8.0%.

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