CO-LIVING OVERVIEW

Co-living is defined as a form of rental housing which includes shared living rooms and kitchens apart from private rooms within a single building. Co-living is attractive to individuals by providing various amenities and communal spaces that are otherwise less accessible to individuals such as kitchens, co-working spaces, fitness facilities, rooftop gardens, pet playgrounds, and cinemas, as well as offering diverse programs and activities aimed to engage residents. The facility is differentiated from a shared house, which suffers from low levels of privacy and potential conflict among housemates, by ensuring personal areas. In Korea, co-living currently operates via various building uses including Urban Residential Housing, Officetels, or Lodging facilities.

MARKET DEMAND

For Seoul, population figures decreased steadily from 9.90 million in 2015 to 9.47 million persons in 2021, while the number of households increased from 3.78 to 4.05 million during the same period. The number of single-person households in Seoul has risen by 1.3x, from 1.12 million to 1.49 million, indicating reduced household sizes.

As of end-2021, approximately 49% of single-person households in Seoul were aged between 18 and 39 years, with students and young professionals clustered in the nation’s capital city for education and job opportunities, translating into demand for small housing units. Furthermore, the recent shift in consumer spending patterns among younger generations who are keener to pursue experiential value is likely to support market demand for co-living.