South Korea increases housing supply plan, furniture market sees huge growth

For the furniture market, the increase or decrease in housing supply and changes in consumption trends will cause huge changes. There is no doubt that the Korean furniture market will be hot in 2021!

Huge increase in housing supply

According to Yonhap News Agency , the South Korean government recently announced a plan to increase housing supply in major cities across the country.

It is reported that Seoul will supply an additional 325,000 new homes and 850,000 new homes nationwide .

The South Korean government will carry out public old-town renovation and shantytown redevelopment, as well as high-density development of subway and high-speed rail business districts and low-rise residential areas in major local cities such as Seoul , Busan, Daegu, Daejeon, and Gwangju, to increase housing supply.

Under this measure, the South Korean government plans to provide pre-sale apartments accounting for more than 70% to 80% of the total housing supply , and will greatly increase the supply of public pre-sale housing in major cities such as Seoul and metropolitan areas.

This series of actions by the South Korean government will indirectly usher in a new wave of growth in the furniture market, which has been booming during the epidemic!

Furniture consumption growth trend under the epidemic

Last year, the epidemic led to an increase in family time, which increased the demand for furniture products. In addition, with the sharp increase in residential transactions across the country, 2020 has become a carnival year for the furniture industry.

According to data from the third quarter of last year , South Korea's cumulative household sales totaled 7.4223 trillion won, up 22.8% from the same period last year.

Among them, online shopping transactions amounted to 3.574 trillion won, accounting for about half of the total sales. Online shopping transactions increased by 42.2% year-on-year , which can be said to have driven the overall sales of furniture products.

According to the latest data from the National Bureau of Statistics , South Korea 's furniture retail sales from October to November last year reached 1.82 trillion won, up 27% from the same period last year. Among them, furniture sales in October reached 921.318 billion won , and sales in November were 903.883 billion won, with sales exceeding 900 billion won for two consecutive months .

Due to the aging of urban center housing and the positive policy of large-scale housing supply across the country, the Korean furniture market will maintain a sustained growth momentum for a long time. Affected by the epidemic, online consumption is still an important channel for Korean consumers!

South Korea

Furniture Market

New House