Two in three Seoul apartment deals involve older units as building materials firms target renovation demand

Two out of every three Seoul apartment transactions now involve units more than 20 years old, as rising prices and shrinking supply of new apartments push buyers toward older stock. Building materials companies are moving to capitalize on the resulting renovation demand, with the remodeling market — covering windows, flooring, kitchens and bathrooms — emerging as a new growth avenue amid a broader construction slump.

Of the 35,745 Seoul apartment transactions recorded in the first half of this year, 23,718 involved units completed more than 20 years ago, accounting for 66.3 percent of the total, according to the real estate industry. That is up 8.9 percentage points from 57.4 percent in the same period last year. By contrast, the share of transactions involving apartments completed within the past five years fell from 9.4 percent to 7.2 percent.

In absolute terms, transactions involving older units declined 5.2 percent, from 25,031 in the first half of last year to 23,718 this year. New apartment deals fell far more sharply, dropping 37.2 percent from 4,089 to 2,569 over the same period. The steeper decline in new-unit transactions has lifted the relative share of older apartments, which carry a lower price burden for buyers.

Building materials companies are responding to the shift by strengthening their direct-to-consumer (B2C) businesses targeting existing homes. "The drop in newly completed units is a concern, but the uptick in older-unit transactions is at least a silver lining," an industry official said. "Since our core products are finishing materials, we are actively developing B2C items aimed at interior renovation and remodeling."

LX Hausys is targeting the older-home replacement market with its high-insulation window lineup. Its flagship product, the LX Z:IN Viewframe, divides the interior of the window sash and frame into multiple chambers to boost thermal performance. The product carries an energy-efficiency rating of Grade 1, helping reduce heat ingress in summer and prevent indoor heating loss in winter.

The company is also focused on minimizing the disruption of window replacement. LX Hausys offers a "one-day installation" service that begins at 9 a.m. and wraps up around 6 p.m., allowing residents to have their windows replaced without vacating their homes or enduring prolonged construction.

LX Hausys showcased its high-insulation windows at the 2026 Korea Build Week held at COEX in Seoul in August, where it also offered consumer consultations. Beyond windows, the company is targeting replacement demand in existing homes through a range of interior materials including flooring and wall panels.

KCC Glass is focusing on partial remodeling through its interior brand Homeccci. The "Homeccci Space Package," launched in May, lets customers choose from five areas of the home — entryway, living room, kitchen, bedroom and bathroom — and renovate only the spaces they need. The product is designed to lower the cost burden for homeowners who want to upgrade worn areas without overhauling the entire unit.

An interior preference survey conducted by KCC Glass confirmed strong interest in partial remodeling. Of 801 respondents to a poll on the official Homeccci Instagram account, 33.1 percent named the living room as the space they most wanted to renovate, while 32.6 percent chose the kitchen. Together, the two spaces accounted for 65.7 percent of responses.

Hansol HomeDeco offers a case study in how remodeling demand can translate into improved earnings. The company posted consolidated sales of 69.1 billion won ($51.5 million) in the first quarter of this year, down 7 percent from the same period a year earlier, but operating profit rose to 2.7 billion won, a 129 percent increase. Net profit for the period surged 454 percent to 3.5 billion won.

Hansol HomeDeco supplies interior materials that allow homeowners to achieve a unified design throughout their homes, including the flooring product SB Maru Stone, the wall panel line Storywall and the furniture-surface material Storyboard. Storywall replicates the texture of natural wood and marble while offering strong resistance to scratches and stains. SB Maru Stone uses a proprietary SB Core material to enhance water resistance and resilience.

"The competitiveness of Storyboard and related products, combined with growing remodeling demand, has driven the improvement in profitability," a Hansol HomeDeco official said. "We will continue to strengthen a sustainable growth foundation by expanding high-value-added products, improving margins and maintaining a stable financial structure."