South Korea’s rental housing market is attracting some of the world’s largest property investors, as the country’s shifting demographics drive demand for professionally managed rental homes.
The Living Company, an Australian residential real estate group and the country’s largest manager of rental assets, earlier this month opened its Korea office in Magok, western Seoul, to spearhead its investments, design and operations.
US-based Greystar Real Estate Partners, which oversees more than 110 trillion won ($79 billion) globally and is considered the world’s biggest rental housing investor, launched its Korean operations in July.
Sources said both groups are preparing for decades-long investments in Korea, starting with student housing and compact city apartments for 18- to 40-year-olds before expanding into senior residences.
Their strategy is to capitalize on the rapid rise in single-person households in Seoul and other major cities, offering small-scale apartments in prime locations with community facilities such as shared kitchens, gyms and co-working spaces.
Stephen Gaitanos (left) and Craig Carracher AM, The Living Company’s founders and joint CEOs pose for a photo at the firm’s Seoul office on Aug. 7, 2025 Single-person households, also known as one-person households, are increasingly common in Korea – Asia’s fourth-largest economy – with over 10 million individuals living alone. This demographic shift is reshaping societal norms and presenting new challenges and opportunities.
PARADIGM SHIFT TO BTR MODEL
The arrival of dedicated global players marks a paradigm shift in a market long dominated by build-to-sell (BTS) development.
Traditionally, Korean developers relied on project finance, sold apartments to individual buyers and exited.
The build-to-rent (BTR) model, where operators retain ownership and generate long-term income from tenants, has been rare, requiring deep pools of capital and operational know-how.
Greystar Real Estate Partners is the largest housing investment firm in the US (Screentop captured from Greystar's website) “Household formation trends in Korea mirror those in other advanced economies, but the speed of change here is striking,” said a Seoul-based alternative asset manager.
According to data from Seoul-based real estate service provider RSQUARE, the share of single-person households in Seoul jumped to 39.3% in 2023 from 29.5% in 2015.
Over the same period, the number of one-person households rose nearly 46%, compared to less than 10% growth in total households.
Across the country, single-person households totaled 9.9 million at the end of 2024, accounting for 41.5% of all households, followed by two-person families at 24.5%.
CPPIB, MORGAN STANELY, KKR, ICG, HINES
Foreign institutional capital has been circling the sector for several years.
Global property asset managers are collaborating with the NPS to enter the Korea's rental home segment Canada’s public pension fund, the Canada Pension Plan Investment Board (CPPIB), in January formed a 500 billion won joint venture with Korean property developer MGRV to build rental homes.
Last November, Morgan Stanley also formed a JV with local developer SK D&D Co., a real estate development unit of SK Group, to invest in the country’s residential properties.
Other investment firms such as US private equity firm KKR & Co. Inc., ICG plc and Hines have also made direct or indirect commitments to Korean rental housing investment.
KOREA’S STRICT TENANCY REGULATIONS
But unlike past deals, industry watchers said Greystar and The Living Company are now fully embedding local operations, from site selection to management, to leverage their global rental expertise.
The Living Company has chosen Korea as its first overseas hub, underscoring its view of the country as a high-growth rental market.
Greystar plans to fold Korea into its $2.6 billion Asia-Pacific fund next year, betting that the model that transformed the US multifamily sector can be replicated in Seoul.
Analysts warn, however, that Korea’s strict tenancy regulations could hinder growth.
Korea’s housing lease, or jeonse, protection law caps rent increases at 5% for contract renewals every two years, limiting flexibility for operators.
“We are exploring alternative formats such as serviced residences to work around regulatory constraints,” said an executive at an international property fund.
“Policy support will be crucial if institutional landlords are to help alleviate Korea’s housing shortage.”
Write to Gyeong-Jin Min at min@hankyung.com In-Soo Nam edited this article.
