Demand for Large Apartments Hits 5-Year High Amid Limited Supply
National apartment trading data shows that transactions for units exceeding 85 square meters reached a five-year high, climbing to 11.27 percent of total sales last year according to the Korea Real Estate Board. This preference for larger floor plans continued into the first seven months of this year, with transactions for homes of that size edging up further to 11.28 percent.
Prices and Subscription Demand Outpace Smaller Units
The market shift toward larger spaces has brought distinct pricing gains. Data from Real Estate R114 indicates that average sales prices per 3.3 square meters for apartments larger than 85 square meters rose by 8.49 percent last year compared to 2022 levels. That increase triples the 2.71 percent average rise recorded across all national housing stock during the same period. By contrast, properties under 60 square meters managed an increase of just 0.95 percent.
Subscription competition reflects the same trend. In April, a development in South Chungcheong Province saw the 125-square-meter A-type unit draw a top competition rate of 67.5 to 1. Other large formats in the same project recorded double-digit competition rates, while smaller layouts drew single-digit interest. Industry analysts attribute the momentum to changes in housing selection criteria, with increased financial and tax burdens from multiple property ownership pushing buyers to prioritize a single, well-located primary residence over multiple smaller holdings.
Limited New Construction Meets Changing Residential Needs
New supply for larger floor plans remains tight. Real Estate R114 figures show that developers planned 19,780 apartment units exceeding 85 square meters for nationwide sale this year, marking the second-lowest volume since records began in 2000 and the lowest total since 2018. Industry sources note that buyers now view homes as multi-functional spaces requiring flexible room layouts for remote work and storage, making scarce large formats increasingly valuable for long-term residency.
Developers are responding to the inventory squeeze with upcoming October launches. HDC Hyundai Development Company scheduled the release of the Gakyung Park Xi complexes 7 and 8 in Heungdeok-gu, Cheongju, featuring 1,671 total units with expansive floor plans ranging up to 116 square meters. Concurrently, KCC E&C prepared its Hwaseong-based Hangnam Station Grove Switzen project, which includes large units scaling up to a 147-square-meter penthouse.