Rapid Increase in 1-2 Person Households, Small Units Valued Higher than Medium-Large, 'Anyang Xi The Forest' Opening on 20th Draws Attention

- Demand for small apartments under 60㎡ exclusive area increases, competition intensifies
- Excellent space design makes it feasible for 3-4 person households, offering high cost-effectiveness

Small-type apartments with exclusive areas under 60㎡ have shown noticeably fierce subscription competition in this quarter's sales market. This is analyzed to be because demand is rapidly increasing, but supply is not keeping pace accordingly.

According to Real Estate Info, a real estate market analysis firm, the average first-priority subscription rate for apartments nationwide with exclusive areas under 60㎡ from January to July was recorded at 13.0 to 1. This showed a significant gap compared to 9.1 to 1 for apartments over 85㎡ and 7.0 to 1 for those between 60 and 85㎡. Notably, the subscription competition rate for small to medium-sized housing surpassing that of medium to large-sized housing is the first time in about five years since 2018.

Competition rates are especially rising around brand-name apartments. In Seoul, the 59㎡ type of ‘Yeongdeungpo Xi Dignity’ launched in March recorded 356.8 to 1 and quickly completed contracts. The same area type of ‘Cheongnyangni Lotte Castle High Luce’ in July was also fiercely competitive at 320.1 to 1. In Gyeonggi Province, the 49㎡ type of ‘Gwangmyeong Xi The Sharp Forena’ in Gwangmyeong sold out quickly with a rate of 96.1 to 1 in May.

The transaction share is also large in the sales market. Among apartment sales nationwide last year, small transactions under 60㎡ accounted for about 51.9% of total transactions, the highest proportion since 2006.

This is because the proportion of 1- to 2-person households, the main demand group for small apartments, continues to increase. According to Statistics Korea, the ratio of single-person households was 33.4% in 2021 and 34.5% in 2022, showing an increasing trend every year. It was found that one in three households is a single-person household, with single-person households nearly double the number of four-person households.

Another reason for the high demand for small apartments is their ‘cost-effectiveness.’ Recently supplied small housing types have excellent space design, making them comfortable even for 3- to 4-person households. This means there is no need to forcefully choose medium or large-sized housing.

Investment demand is also considerable. According to the Ministry of Land, Infrastructure and Transport, the proportion of monthly rent apartments in Seoul this year exceeds 40%. Small-type apartments require relatively less purchase capital compared to medium and large types, allowing for stable monthly rent income.

An industry official said, “As consumers’ standards have risen, the product competitiveness of small apartments has improved to a level comparable to medium-sized ones, making them popular among rational consumers.” He added, “Especially as pre-sale prices continue to rise, it is necessary to pay close attention to new supply volumes. With the increasing ratio of single-person households, if the supply of small apartments is unstable, the scarcity of small types will inevitably increase.”

Meanwhile, an apartment mainly composed of medium and small sizes in Manan-gu, Anyang, considered the biggest beneficiary area of the Wolpan Line, is expected to attract high interest as it goes on sale this month.

GS Construction’s ‘Anyang Xi The Forest,’ built through the Hwacheong District housing redevelopment in Manan-gu, Anyang, is the subject, with a total of 483 households. It is characterized by being composed only of exclusive areas of 49㎡, 59㎡, and 73㎡, with 212 households planned for general sale. The model house will open on the 20th.

Anyang Xi The Forest boasts excellent transportation conditions. It is within walking distance to Gwanak Station on Subway Line 1, and KTX Gwangmyeong Station is about a 7-minute drive away. Additionally, the planned Manan Station (tentative name) on the Wolgot?Pangyo Line will be within walking distance, and the Sinansan Line connecting Gwangmyeong Station to Yeouido is under construction, making access to Seoul by public transportation more convenient. Furthermore, road access to Seoul is excellent via Gyeongsu-daero, Seohaean Expressway, Gangnam Circular Expressway, and the 2nd Gyeongin Expressway.

The educational environment is also good. Hwacheong Elementary School is adjacent to the complex, and students can commute to Anyang Middle School, Anyang Girls’ Middle School, Chunghoon High School, and Anyang High School. The Anyang City Seoksu Library is also located right next to the complex. Moreover, the apartment is a ‘forest zone’ surrounded by Waryongsan, Kkotmesan, and Seoksusan Mountains, and residents can enjoy leisure activities at Anyangcheon, Chunghoon Park, and Anyang Saemul Park, providing a pleasant environment.

Convenience facilities are well equipped. Within about 2 km radius of the complex, residents can enjoy the Gwangmyeong Station living zone, making it convenient to use various facilities. It is easy to access IKEA, Lotte Mall, Costco, and Chung-Ang University Hospital near Gwangmyeong Station, and the central commercial district of Anyang 1st Street can also be enjoyed simultaneously.

Additionally, specialized designs and various community facilities have been added. Each type includes a dressing room and entrance storage. Community facilities for residents include a golf practice range with screen golf facilities, a fitness club, GX room, sauna, small library and reading room, cafeteria, and various landscaping features with water facilities within the complex.

A local real estate agent said, “With geographical advantages adjacent to Seoul and major transportation benefits, it has all the infrastructure emphasized in the housing market, attracting high interest.” He added, “With the recently improved market atmosphere creating synergy, subscription competition rates are expected to be fierce.”

Meanwhile, various events such as visitor events and subscription certification events will be held at the Anyang Xi The Forest model house.

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