Skip to main content

[Yanolja Research Insights] Vol.9 Airbnb's Growth and Its Impact on the Seoul Real Estate Market

How Airbnb's Growth is Reshaping Seoul’s Real Estate Market

Seoul has seen a rapid rise in Airbnb listings, sparking important discussions about its impact on the local real estate market. A recent Yanolja Research Insights Vol.9 delves into this phenomenon, providing a data-driven analysis of how Airbnb influences property prices and rental rates across the city. Here are the key takeaways from the study:


Airbnb’s Expansion in Seoul

  • As of April 2023, there are 13,945 Airbnb listings in Seoul.

  • Over 8,000 listings are concentrated in five key districts: Mapo-gu, Gangnam-gu, Yongsan-gu, Jung-gu, and Jongno-gu.

  • Certain areas, like Seogyo-dong, show a clear shift from residential use to short-term rentals.


Impact on Property Prices

  • The study found a correlation between Airbnb growth and property price fluctuations, especially in high-density Airbnb districts.

  • Apartments in areas like Mapo-gu and Gangnam-gu showed significant price increases tied to Airbnb expansion.

  • Officetels and multi-family housing in some districts also experienced noticeable price effects.


Effects on Rental Rates

  • Apartment rental rates in Mapo-gu and other dense Airbnb districts have risen significantly.

  • Officetels in Gangnam, Seocho, and Songpa saw noticeable rental price increases.

  • Multi-family housing, particularly in Mapo-gu and speculative zones, showed strong links between Airbnb growth and rising rental costs.


Policy Considerations and Future Outlook

  • With the continued growth of Airbnb, housing affordability and availability could become more challenging for Seoul residents.

  • As Seoul attracts more international tourists, the demand for short-term rentals is expected to rise further.

  • The government may need to introduce policy measures to balance tourism growth with housing stability.


Learn More

These findings highlight the evolving relationship between shared accommodation platforms and Seoul’s housing market. For a deeper dive into the data and analysis, visit Yanolja Research Official Website to read the full report.
Yanolja Research Insights Vol.9

Stay tuned for more updates on how the travel and hospitality industry continues to shape urban landscapes!

Labels:
Location: Seoul, Korea

Comments

Post a Comment

Popular posts from this blog

[Yanolja Research Insights] Vol.1 Digital Transformation and Globalization Strategy for the South Korean Tourism Industry

The South Korean tourism industry has substantial growth potential, but it still lags behind global counterparts in terms of its contribution to GDP. While tourism globally accounts for 10.3% of GDP, Korea’s tourism contribution is only 2.8%. To achieve similar growth seen in countries like Japan, Korea needs to prioritize digital transformation (DX) in its tourism sector, focusing on rapid adoption of technological innovations. Key Changes and Trends in the Tourism Industry: Automation and Technology Integration : The industry is moving towards automated, contactless services, transforming sectors like airports, hotels, and tourist centers into high-value operations. Growth of Tourism Solutions : Specialized solutions, such as cloud-based management systems, are improving operational efficiency and service quality for hotels and tour companies. Hyper-Personalization : Using big data, tourism services are increasingly tailored to individual preferences, exemplified by servic...
Post a Comment
Read more

[Yanolja Research Insights] Vol.3 Current Status of the Seoul Airbnb Market

  ✨Airbnb Market Trends in Seoul(As of April, 2023) Airbnb hotspots are centered around tourist and commercial areas. Mapo-gu had the highest number of listings and OCC, while Jongno-gu had the highest RevPAR. Airbnb rooms account for 18.7% of Seoul's lodging market in 2022. 📈Post-Pandemic Recovery Number of Bookings: 987,082 (2019) → 404,320 (2021) → 589,993 (2022) Transaction Volume: 237.3 billion KRW (2019) ➔ 78.9 billion KRW (2021; a decrease of -66.8% compared to 2019) ➔ 150.7 billion KRW (2022; an increase of +91.0% compared to the previous year) 🌍Seoul vs. New York vs. London Number of Rooms(As of December 2022): London(106,752) > New York(53,292) > Seoul(17,257) Airbnb market share in the accommodation market: London (41.5%, as of March 2023) > New York (27.4%, as of March 2023) > Seoul (18.7%, average for 2022) In Seoul, multi-unit hosts (operators managing multiple properties) dominate the market. In New York and London, single-unit hosts (operators man...
Post a Comment
Read more

[Yanolja Research Brief] Vol. 2 Inbound & Outbound Tourism S. Korea in the 2024 H1

South Korea’s Tourism in 2024 H1: A Dynamic Recovery with New Opportunities Foreign Visitors Bounce Back Strongly, But Spending Dips The number of foreign tourists visiting South Korea surged to over 7.7 million in the first half of 2024, reaching 91.2% of the pre-pandemic peak in 2019-a remarkable 73.8% increase from the same period last year. Notably, tourists from long-distance regions like the Americas, Europe, Africa, and Oceania grew significantly, with countries such as the U.S., Germany, France, and Australia showing impressive gains. However, key Asian markets like China, Japan, and Thailand saw declines, leading to an overall drop in Asian visitors compared to 2019. Despite more visitors, average spending per tourist fell sharply to around $1,000, down 18.3% from 2019. This resulted in only a modest 8.3% increase in total tourism income compared to 2023, still 25.4% below 2019 levels. South Koreans Travel Abroad More, But Spend Less Outbound travel also rebounded strongly, wi...
Post a Comment
Read more