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– D&D Property Management Inc. Issues Coliving Market Report in Korea
– In Lonely and Contact-free Era, One-person Households Turn to Coliving Despite Being Further Out
– Market to Grow more than Threefold to 67,000 Units in 2024 Propelled by Customers’ Needs
Real estate management company, D&D Property Management Inc. (DDP), SK D&D’s operation & management company, issued the “Coliving 2020 Trend Report.”
The report offers insights into the general Korean housing market trend and changing customers, exploring a variety of areas including new technological advances, solutions, and contents related to the residential real estate market.
Koreans Millennials Opt for Coliving Despite Distance, Longing for New “Experiences”
The report finds that Koreans aged between 25 and 35 (“Generation 2535”) make up the majority of the main consumer base, accounting for 70% of the total coliving residents. The so-called “Generation 2535” willing to spend a fairly large sum of money on them following careful considerations, showed a similar tendency in choosing homes. 35% of coliving residents chose to move into coliving arrangements despite longer commutes, and 74% among them attributed their relocation to their desire for “a new living environment and lifestyle.”
The Rise of Single-person households & Contact-free Interaction Boosts Demand for Sharing & Interaction
“65% of millennials always or often feel lonely,” says the report. The figure is higher for millennials compared to other age groups. “Loneliness” and “Anxiety” are common issues facing increasing one-person households as well as for millennials, and they are expected to be aggravated due to a decline in outdoor activities, face-to-face interactions amid COVID-19. The report points out that renters look to coliving as a solution to these problems. To meet the expectations of these potential renters, many coliving operators are making whole-hearted efforts by holding community-focused online/offline events, offering a wide spectrum of concierge services, and actively providing guidelines on hygiene and emergency.
Sharing Common Areas Leads to Larger Living Space for Coliving Residents
Coliving arrangements can meet the demand of “Generation 2535”, looking for spacious places with their limited budget. Washing machines, storages, and kitchens which would otherwise render living space cramped can all be shared in communal areas while recreational amenities including a lounge, gym, and a rooftop garden are also offered on-site. In coliving arrangements, therefore, living space per person can increase by up to 25%. It is good value for money: greater efficiency for the same amount of money spent.
The report highlights that in the post-pandemic world, “growth” enabled by “co-existence” and “interaction” with local communities lies at the heart of coliving. In the past, home simply provided “rest and safety” as a shelter; however, it will evolve into a platform for “growth” which ensures economic/social “production and consumption” and most importantly, connection among time, space, and people.
In Korea, numerous companies including SK D&D are investing in coliving development. The supply of 21,371 units in 2020 is projected to increase more than threefold to 67,891 in 2024. SK D&D, one of the leading companies, made its entry into the coliving market in earnest by launching a branded residence “episode (epsd.co.kr)” in January, which reflects the lifestyle of millennials. SKD&D opened “episode Seongsu 101 (89 units)” in January and “episode 121 (112 units)” in July, providing a wide range of social events and concierge services on-site. Currently, 2,500 more units of “episodes” in the main areas of Seoul including Shinchon, Seocho, and Suyu are under development.
DDP, a real estate management company under SK Group is in charge of operation and management of residential real estate including “Episodes” of SK D&D. DDP, as a dominant player in the coliving industry, will continue to issue reports on coliving market trends. A request for a copy of the full report “Coliving 2020 Trend Report” can be made on www.dndproperty.com.