Residential Real Estate - South Korea

The South Korean Residential Real Estate market market is projected to reach US$8.29tn in 2024.
The market is expected to show an annual growth rate (CAGR 2024-2029) of 1.72%, resulting in a market volume of US$9.03tn by 2029.
When compared globally, China is expected to generate the highest value in the Real Estate market, with US$112.9tn in 2024.
The demand for luxury apartments in South Korea's major cities has surged, driven by high-income individuals and foreign investors.

Definition:

The residential real estate market covers the leases and transactions of residential properties. Residential real estate leases refer to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums, while residential real can be defined as buying, selling, or transfer of ownership of residential properties.

Structure:

The residential real estate market covers real estate transactions and leases, and the section, residential real estate leases, is divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and for real estate renters as well.

Residential real estate transactions
Residential real estate leases

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

The Residential Real Estate market in South Korea has been experiencing several trends and developments in recent years. Customer preferences have shifted towards smaller and more affordable properties, while local special circumstances and underlying macroeconomic factors have also played a role in shaping the market. Customer preferences in the South Korean Residential Real Estate market have been influenced by various factors. One key preference is for smaller properties, as many people are seeking more compact and efficient living spaces. This trend is driven by a desire for affordability and convenience, as smaller properties are often more affordable and easier to maintain. Additionally, the younger generation in South Korea is increasingly prioritizing experiences and lifestyle over material possessions, leading to a preference for smaller homes that require less time and effort to manage. Another customer preference in the South Korean market is for more affordable properties. The cost of living in South Korea has been rising in recent years, and many people are looking for ways to reduce their expenses. This has led to a demand for more affordable housing options, including smaller apartments and studio units. Developers and real estate agents have responded to this demand by offering a wider range of affordable housing options, including micro-apartments and shared living spaces. In addition to customer preferences, there are several trends in the South Korean Residential Real Estate market that are shaping its development. One trend is the increasing popularity of mixed-use developments, which combine residential, commercial, and recreational spaces in a single complex. These developments cater to the desire for convenience and accessibility, as residents can live, work, and play within the same community. Mixed-use developments also often include amenities such as shopping centers, restaurants, and green spaces, further enhancing their appeal. Another trend in the South Korean market is the growing interest in sustainable and eco-friendly housing. With increasing awareness of environmental issues, many homebuyers are looking for properties that are energy-efficient and environmentally friendly. This has led to a rise in the construction of green buildings and the integration of sustainable features, such as solar panels and rainwater harvesting systems. Local special circumstances in South Korea have also influenced the Residential Real Estate market. One such circumstance is the high population density in urban areas, particularly in cities like Seoul. This has led to a shortage of available land for development, driving up property prices and increasing demand for smaller, more compact housing options. Underlying macroeconomic factors have also played a role in shaping the South Korean Residential Real Estate market. For example, low interest rates have made it more affordable for people to borrow money and invest in property. Additionally, government policies and incentives aimed at boosting the housing market have also contributed to its development. In conclusion, the Residential Real Estate market in South Korea is experiencing several trends and developments. Customer preferences for smaller and more affordable properties have influenced the market, while trends such as mixed-use developments and sustainable housing have also shaped its development. Local special circumstances, such as high population density, and underlying macroeconomic factors, such as low interest rates and government policies, have further influenced the market.

Data coverage:

Figures are based on total and average value of residential real estate, residential estate transactions and leases.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

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Residential Real Estate - South Korea

Value

Volume

Analyst Opinion

Transaction Value

Revenue

Household Type

Real Estate Type

Community Size Split

Living Space

Methodology

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