South Korea Residential Real Estate Market Size
| Study Period: | 2019-2028 |
| CAGR: | > 11.98 % |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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South Korea Residential Real Estate Market Analysis
The Residential Real Estate Market in South Korea was valued at USD 270 billion in 2022, and is expected to reach USD 564.18 billion by 2028, growing at a CAGR of 13.07% during the forecast period (2023-2028).
- The COVID-19 pandemic brought a huge difference in the residential real estate market in South Korea. The number of private apartments sold in Seoul from January 2021 to July 2021 was 1,895 units, a decrease of 86% from the same period last year (13,782 units), while in the metropolitan area, 40,876 households were sold during the same period.
- In January 2021, South Korea's finance ministry prioritized the increase of housing supply, with construction regulations in heavily crowded urban areas relaxed and redevelopment projects supported to stabilize and drive the housing market. Further, the government announced its plan to develop 830,000 housing units nationwide, including 320,000 units in Seoul by 2025.
- In Asia, South Korea has developed its green building certification system, the Green Standard for Energy and Environmental Design (G-SEED), which assesses the eco-friendliness of buildings by evaluating eight environmental areas.
- High-rise apartments, detached homes, and row houses are Korea's primary housing types. In South Korea, apartments are the most prevalent type of housing. These flats are frequently located in residential high-rise structures with five to twenty levels.
- The most popular form of housing for South Koreans is an apartment since the neighborhood is readily constructed around the apartment complex. An apartment complex often houses hundreds to thousands of households with retail stores, recreation areas, and childcare facilities. Nevertheless, detached homes are becoming more popular as it has become more fashionable to live outside cities.
South Korea Residential Real Estate Industry Segmentation
Residential real estate includes both new construction and resale homes. Residential real estate is an area developed for people to live in and cannot be used for commercial or industrial purposes.
It emerges when land sanctioned for residential use is purchased by someone, which becomes real property and encompasses a large variety of potential dwellings, from houses to houseboats and from neighborhood types ranging from the poorest slum to the wealthiest suburban subdivision.
A complete assessment of the residential real estate market in South Korea includes a review of the economy and the sector's contribution to the economy, a market overview, market size estimation for key segments, and emerging trends in the market segments covered in the report.
The report includes government regulations and initiatives and key trends in this sector. The report sheds light on market trends like growth factors, restraints, and opportunities in this sector. The competitive landscape of the residential real estate market in South Korea is depicted through the profiles of active, vital players. The report also covers the impact of the COVID–19 pandemic on the market and future projections.
The residential real estate market in South Korea is segmented by type (apartments and condominiums and landed houses and villas) and geography (Seoul and other locations). The report offers market size and forecasts for the residential real estate market in South Korea in value (USD billion) for all the above segments.
| By Type | |
| Apartments and Condominiums | |
| Landed Houses and Villas |
| By Geography | |
| Seoul | |
| Other Locations |
South Korea Residential Real Estate Market Trends
This section covers the major market trends shaping the South Korea Residential Real Estate Market according to our research experts:
Urbanization in the Country is Driving the Market
Asia-Pacific is urbanizing faster than Europe and North America. It will likely continue to have most of the world's megacities (urban agglomeration areas with a population of over 10 million). The rapid industrialization that Korea experienced has accelerated migration patterns and demographic trends from rural to urban areas. Due to the increasing population, the country has experienced unbalanced land distribution and demographic patterns.
Rapid urbanization, demographic changes, and technological advancements are trends driving cities' residential real estate market. These factors contributed to the rising house prices, affordable housing shortages, and limited housing stock in many cities. These problems, in turn, threaten not just financial market stability but also the quality of life and integration and city competitiveness on the national and international scale.
In response, the cities are focusing on creating more housing, including a more diverse range of options for the housing stock to meet the needs of different types and income levels of households. Further, through applying the principles of 'good density, ' integrated urban environments can be created with high-quality placemaking that cater to a range of income and population groups and contribute to the vibrancy and authenticity of a city.
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Affordable Housing Supply in the Country
South Korea ranked third from the bottom, with a property affordability score of 3.94 (in December 2021). With relatively low salaries and high apartment costs, South Koreans may find it challenging to afford houses.
As reported in February 2021, South Korea planned to supply 830,000 housing units in Seoul and other big cities by 2025 through housing redevelopment projects led by state-run agencies, marking the largest-scale supply measure envisioned by the Moon Jae-in administration. Of the 830,000 housing units, 323,000 new houses will be built in Seoul and 293,000 in the Gyeonggi Province and Incheon. The ministry also plans to add over 220,000 new homes in major cities, including Busan, Daegu, and Daejeon, which saw hikes in property prices.
Additionally, the Ministry of Land, Infrastructure and Transport announced its real estate plan, aimed to provide affordable housing in big cities to meet the demand from young people and tackle soaring home prices. The focal point of the new measure is to have public developers, such as the state-run Korea Land and Housing and Seoul Housing and Communities to create fast-track approval processes to expand the housing supply swiftly.
South Korea Residential Real Estate Industry Overview
Public services mostly dominate the housing or residential development in South Korea. Government agencies, such as the Korea National Housing Corporation and the Korea Land Development Corporation, primarily undertake housing developments in Korea.
Dongbu Corporation, Hines, Shinyoung (Greensys), Korea Land and Housing Corporation, Booyoung Group, and HDC Hyundai Development are prominent players in the market. Growing residential and affordable house construction in the country generates several opportunities for companies in the industry.
South Korea Residential Real Estate Market Leaders
Hyosung Corporation.
Dongbu Corporation.
Daelim Corporation
Booyoung Group
Korea Land and Housing Corporation.
*Disclaimer: Major Players sorted in no particular order
South Korea Residential Real Estate Market News
- August 2022: The new government in South Korea announced that it would build 2.7 million new homes across the nation over the following five years, many of them in major cities where a lack of housing has frequently been cited as a contributing factor to rapid price increases.
- April 2022: M&G Real Estate announced that it had paid KRW 264.5 billion (USD 214.6 million) for a 97 percent stake in an office building in Greater Seoul. This is the fourth South Korean purchase made by the UK fund manager since 2020 for an Asian separate account mandate.
South Korea Residential Real Estate Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview (Current Scenario of South Korea’s Economy and the Residential Real Estate Market)
4.2 Insights into the Interest Rate Regime for General Economy and Real Estate Lending
4.3 Demographic Analysis of South Korea
4.4 Data and Commentary on Key Residential Real Estate Parameters
4.5 Insights into Real Estate Purchasers
4.6 Spotlight on Real Estate Contract Types
4.7 Spotlight on the Trends in the South Korean Residential Real Estate Market
4.8 Insights into the Primary and Secondary Markets in South Korea
4.9 Spotlight on Affordable Housing Supply in South Korea
4.10 Technological Innovations in South Korea’s Residential Real Estate Market
4.11 Insights into Environment Friendliness in the South Korea Construction Market
4.12 Government Policies and Initiatives
4.13 Insights into Rental Yields and Prices in the Real Estate Segment
4.14 Insights into Unit Based Metrics
4.15 Insights into Return Metrics for Transactions of the Residential Real Estate Market in South Korea
4.16 Impact of the COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Drivers
5.2 Restraints
5.3 Opportunities
5.4 Industry Attractiveness - Porter's Five Forces Analysis
5.4.1 Threat of New Entrants
5.4.2 Bargaining Power of Buyers/Consumers
5.4.3 Bargaining Power of Suppliers
5.4.4 Threat of Substitute Products
5.4.5 Intensity of Competitive Rivalry
5.5 PESTLE Analysis
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Apartments and Condominiums
6.1.2 Landed Houses and Villas
6.2 By Geography
6.2.1 Seoul
6.2.2 Other Locations
7. COMPETITIVE LANDSCAPE
7.1 Overview (Market Concentration and Major Players)
7.2 Company Profiles (Key and Upcoming Players in the Residential Real Estate Market in South Korea)
7.2.1 Hyosung Corporation
7.2.2 Dongbu Corporation
7.2.3 Daelim Corporation
7.2.4 Booyoung Group
7.2.5 Korea Land and Housing Corporation
7.2.6 ShinYoung Greensys
7.2.7 Hyundai Development Company
7.2.8 Hines
7.2.9 Knight Frank
7.2.10 Cushman And Wakefield*
7.3 Competition Overview in Other Real Estate Services and Allied Segments (Brokers, Property Managers, and Facility Managers such as CBRE Korea, Savills Korea, Cushman and Wakefield Korea, KOREIT, JLL Korea, Hines Korea, Golden Planners Korea, Chestertons South Korea, Taekwang, and Libeto)
7.4 Company Profiles in Real Estate Tech (Real Estate Tech Startups Across Various Disciplines such as Zigbang, Fast Five, Neighborhood, nemoapp, Sugarhill, Hogaeng Nono, r.square, Disco, Mangrove, and Stayes)
8. FUTURE OF THE MARKET
9. INVESTMENT ANALYSIS
10. APPENDIX
10.1 Macroeconomic Indicators (GDP Breakdown by Sector, the Contribution of Construction to the Economy, etc.)
10.2 Other Relevant Data (Most Expensive Apartments in South Korea Based on Actual Transaction Value, Most Expensive Areas in Seoul, etc.)
South Korea Residential Real Estate Market Research FAQs
What is the study period of this market?
The South Korea Residential Real Estate Market is studied from 2019 - 2028.
What is the growth rate of South Korea Residential Real Estate Market?
The South Korea Residential Real Estate Market is growing at a CAGR of >11.98% over the next 5 years.
Who are the key players in South Korea Residential Real Estate Market?
Hyosung Corporation., Dongbu Corporation., Daelim Corporation, Booyoung Group, Korea Land and Housing Corporation. are the major companies operating in South Korea Residential Real Estate Market.
Residential Real Estate Market in South Industry Report
Statistics for the 2023 Residential Real Estate in South Korea market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Residential Real Estate in South Korea analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Residential Real Estate in South Korea Report Snapshots
