Korean-owned homes of four units or less within Los Angeles Koreatown have increased by about 18 percent in 2016 compared to the year before, according to recent data. The higher figure serves as another proof of Southern California’s booming home market.
The data provided by Chicago Title per Korea Daily’s request showed that Koreans have spent a combined total of approximately $354 million as they purchased 456 homes (properties with four units or less) in 2016 across Koreatown, represented by six zip codes—90004, 90005, 90006, 90010, 90019 and 90020.
In 2015, Koreans purchased 387 homes in the same area. Hence, last year’s figure marks a 17.8 percent increase. The recently increased rate of Korean homebuyers in Koreatown is similar to that of 2012 when 434 homes were purchased by Koreans in the same area.
The spending of Korean homebuyers last year also increased by 27 percent compared to 2015, while it is 56 percent higher than 2012 ($227 million).
Case in point, the homes purchased by Koreans have increased considerably in value. The average cost per Korean-owned home was $776,810. That is an increase of about $50,000 from 2015. Compared to 2012 ($523,160), that is an increase of 48.5 percent.
▶ Analysis per unit
Houses, condominiums and town houses took up 355 of 456 (77.9 percent) homes purchased by Koreans in 2016, which marks the price of one unit at $728,571. That is also a 5.4 percent increase compared to 2015 ($691,109) and a 44.5 percent increase from 2012 ($504,242).
Koreans purchased 52 duplexes (two-unit homes), which on average cost them $960,146. The average price for a duplex in Koreatown in 2015 was $752,943. The recent average price of a duplex also marks a 95.4 percent increase compared to 2012. It is believed that such a steep rise of duplexes stems from an average duplex’s capacity to be further developed, which is what makes it so in-demand for homebuyers.
On the other hand, only nine triplexes (three-unit homes) were purchased at $741,778 per property, which was surprisingly lower than the value of an average duplex. Koreans purchased 40 fourplexes (four-unit homes) at an average price of $974,477. That is a slight decline compared to 2015 when the average fourplex price was $981,712, but a 52.2 percent increase from 2012 ($640,333).
By Hyun Woo Kim