Largest Transaction in History for Detached Single Family House
While most people in Korea live in apartments, transactions of detached single family houses have increased every year since the 2010’s.
According to house transactions by housing type surveyed by the Korea Appraisal Board, transactions of detached single family houses in the past five years increased by 47%. In particular, the transaction volume last year was the largest in history since statistics were taken and the upward tendency is expected to continue this year as the transaction volume in April is higher than that for the same period of last year.
Transactions of detached single family houses led to the increase of housing prices. Analysis of the sale price index by the Korea Appraisal Board shows that the apartment sale price index across Korea went down by 0.20% but that of detached single family house rose by 0.60%.
As for the reasons that detached single family houses are gaining popularity, experts point out scarcity and rise of land price. The scarcity value of detached single family houses can only increase as it is difficult to find land and carry out a project in it in the heart of the city. Furthermore, there are a number of old houses in the downtown area that do not attract buyers while detached single family houses allow its dwellers to enjoy a nature-friendly living environment as well as urban infrastructure. In addition, detached single family houses offer greater land portions than apartments and the high and increasing land price also becomes another popularity factor that increases the investment value.
With transactions of detached single family houses increasing, the market for wood framed houses consistently expanded since 2006 when Canada Wood Korea was established. Also, the quality and awareness of wood frame construction have changed greatly and positively through technical seminars. Scarcity, one of the reasons detached single family houses are popular, is also one of the strengths of wood framed house, which is already in the spotlight as the most suitable material for low-energy house as a future-oriented house.