Partial Home Renovations Gain Traction in South Korea Amidst Rising Costs

With the soaring cost of real estate and a significant increase in material and labor expenses, South Koreans are increasingly turning to "partial interior renovations" as a practical and budget-friendly solution. Instead of undertaking expensive full home makeovers or facing the high costs associated with moving, homeowners are opting to refresh key areas like kitchens and bathrooms to achieve a "like-new" home feel.

This trend is reflected in surging sales figures for partial renovation products. CJ OnStyle reported an 181% year-over-year increase in sales for items like sink bowls, ceiling fans, and bathroom vents during the first five months of the year. Replacing a sink bowl, for instance, costs between 500,000 and 1 million won and takes about two hours, a fraction of the estimated 10 million won for a full kitchen renovation.

The shift towards partial renovations is also linked to a broader slowdown in the real estate market. Data shows a 1.5% decrease in domestic moves in May compared to the previous year, the lowest figure for May since 1974. Simultaneously, requests for partial interior services have surged by 88.2% between 2021 and 2023, with sink replacements and bathroom remodeling seeing an 86% increase. This indicates consumers are seeking more affordable ways to improve their living spaces.

In response, retailers are expanding their offerings. CJ OnStyle has introduced premium sink bowl brands, while KCC Glass launched "Homecc Space Packages" allowing customers to select specific areas like the entryway, living room, kitchen, bedroom, or bathroom for renovation. Hanssem is also enhancing its kitchen and bathroom renovation services that can be completed without moving. Even appliance retailers like Lotte Hi-Mart are integrating interior design consultations with appliance purchases, recognizing the growing demand for one-stop home improvement solutions.

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In a period of high inflation and a slowdown in real estate transactions, there is a tendency to invest in partial interior renovations that can increase perceived satisfaction at a low cost.