Small apartments are simultaneously gaining popularity in Seoul's apartment sales, jeonse and monthly rentals, and subscription markets. Analysts say demand is flocking to smaller units because they are relatively less burdensome financially as one- to two-person households grow and loan regulations tighten. Demand to own a single "smart, solid home" in a prime area, even if it is small, also appears to be having an effect.
On the 27th, according to the Ministry of Land, Infrastructure and Transport's actual transaction price information system, the 35㎡ exclusive area at Parkrio in Sincheon-dong, Songpa District, set a record high when it changed hands for 1.55 billion won on the 19th. That is 150 million won higher in just half a month compared with the 1.4 billion won transaction on the 5th. Compared with the same layout that sold for 960 million won in Jan. last year, the price rose by nearly 600 million won.
The 35㎡ exclusive area at Helio City in Garak-dong, Songpa District, also set a record high when it saw a transaction at 1.825 billion won in Jan. Asking prices for listings are set between 1.9 billion won and 2.5 billion won. By contrast, for the 84㎡ exclusive unit that changed hands for 3.15 billion won last month, the lowest asking price among current listings is 2.75 billion won, meaning the price has actually fallen below the record high.
The sharp rise in sale prices of small-unit apartments is because they are less expensive than mid- to large-sized units. As government loan regulations make it harder to raise money, more people are lowering their sights and buying smaller units, analysts say. An employee at a certified real estate agency in Jamsil said, "These days, people will reduce floor space but they absolutely do not want to give up location," adding, "Even though the same money could buy a 30- to 40-pyeong apartment on the outskirts of Seoul, the number of customers inquiring about 10-pyeong units to get into Jamsil has increased since late last year."
A shift is also being detected in the "people's standard size" from 84㎡ exclusive to 59㎡. Based on an analysis by the real estate information application Jippoom using data from the Ministry of Land, Infrastructure and Transport's public system for actual transaction prices, in Jan.–Feb. this year, monthly rent transactions for 59㎡ exclusive totaled 4,494, about 28% more than 84㎡ (3,494). As recently as two years ago in 2024, during the same period, monthly rents for 84㎡ (3,558) outnumbered those for 59㎡ (3,295).
In the subscription market, competition is concentrating on small apartments priced at 1.5 billion won or less, for which mortgage loans are available up to the maximum (600 million won). For Mullae-dong The Sharp Priele in Yeongdeungpo District, first-priority subscription tallies on the 24th showed a competition rate of 896 to 1 for the 59㎡A type. The 59㎡C (142.38 to 1) and 59㎡B (130.4 to 1) exclusive types also posted triple-digit competition. The competition rate for the 44㎡ exclusive type was 145.75 to 1. The presale prices for the 44㎡ and 59㎡ exclusive units are 885 million won and 1.3039 billion won, respectively.
Last year, the number of applicants for small-unit subscriptions surpassed those for mid-sized units. According to Real Estate R114, of the total 485,271 applicants for apartment subscriptions in the greater Seoul area last year, 218,047 went for apartments of 60㎡ exclusive area or less. They were followed by 217,322 for mid-sized apartments of 60–85㎡ exclusive, and 49,902 for large apartments exceeding 85㎡ exclusive.