The price gap between large and small apartment complexes in South Korea has widened. In the past year, the average sale price for complexes with over 1,500 units increased by 2.77 million won per 3.3 square meters, more than three times the increase seen in complexes with fewer than 300 units.
According to data from Real Estate 114, the average sale price for complexes with over 1,500 units reached 30.59 million won per 3.3 square meters in August, a 9.96% increase from 27.82 million won during the same period last year. In contrast, complexes with fewer than 300 units saw an increase of only 900,000 won.
Price increases were more pronounced in larger complexes. For complexes with 300 to 499 units, the price rose by 1.09 million won per 3.3 square meters; for those with 500 to 699 units, the increase was 1.34 million won; for 700 to 999 units, it was 1.54 million won. Complexes with 1,000 to 1,499 units saw an increase of 1.9 million won, while those with over 1,500 units experienced a rise of 2.77 million won, approximately 3.1 times higher than the increase for complexes with fewer than 300 units.
The trend continued in the subscription market, where larger complexes attracted more applicants. This year, 40 complexes with over 1,000 units were offered nationwide, averaging 2,308 first-choice applications per complex. In comparison, 135 complexes with fewer than 1,000 units received an average of 1,691 applications.
Notably, the figures for complexes under 1,000 units include some that received a high number of applications in Seoul. For instance, the 'Otiere Banpo' complex, with 251 units, attracted 30,540 applicants, while the 'Acro de Seocho 2nd Complex,' with 682 units, received 29,535 applications.
Excluding these high-demand complexes, the average number of applicants for complexes with over 1,000 units was 1,966, compared to just 925 for those with fewer than 1,000 units, highlighting a significant disparity.
Despite the demand, the supply of large complexes is decreasing. By the end of this year, a total of 38,314 units in complexes with over 1,500 units are expected to be completed, down approximately 42% from 65,190 units last year.
For complexes with 1,000 to 1,499 units, the number is projected to drop from 70,868 units in 2024 to 30,065 units this year. In contrast, the decrease in the supply of complexes with fewer than 1,000 units is estimated to be around 20-30% compared to the previous year.
The decline in the supply of large complexes is evident even when combining those with over 1,000 units. According to Real Estate 114, the total number of units in complexes with over 1,500 and those with 1,000 to 1,499 units fell from 106,133 last year to 75,379 this year, a decrease of about 29%.
The reduction in supply is more pronounced in larger complexes. The number of units in complexes with over 1,500 dropped from 65,190 last year to 38,314 this year, a decline of about 42%, while the number for complexes with 1,000 to 1,499 units decreased by 9.47%, from 40,943 to 37,065.
An industry insider noted, “Larger complexes tend to offer more diverse community facilities and allow for shared management costs among residents, which drives demand. However, supply is decreasing more rapidly than for smaller complexes, leading to inevitable polarization in demand based on complex size.”
However, the insider cautioned, “It is difficult to predict how price trends will change at this moment. Actual apartment prices and subscription results are influenced by factors such as location, completion year, and sale price, so the impact of the preference for larger complexes and the decrease in supply on future prices will need to be monitored closely.”
* This article has been translated by AI.
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