As apartment prices and rental costs rise, coupled with a decrease in available listings, demand for medium to large officetels is increasing.
According to the real estate industry on the 23rd, the total number of officetel transactions nationwide in the first half of this year reached 18,035, an 8.24% increase from 16,662 transactions in the same period last year. Compared to the second half of last year, which saw 16,192 transactions, this represents an 11.38% increase.
Notably, there has been a significant rise in transactions for officetels with a dedicated area exceeding 60 square meters, which offer living spaces similar to apartments. The transaction volume for this size category in the first half of this year increased by 21.44% compared to the second half of last year.
Prices are also trending upward, particularly for medium to large officetels. According to the Korea Real Estate Agency, the nationwide officetel sales price index for units between 60 and 85 square meters turned upward in July and has risen for two consecutive months. Units larger than 85 square meters have seen an upward trend for 11 months since turning around in October of last year.
The ratio of sales prices to rental prices has also increased. In August, the nationwide sales-to-rent ratio for officetels reached 86.31%, the highest level since statistics began being collected in 2018. This narrowing gap between sales and rental prices is believed to ease the purchasing burden for actual buyers.
In fact, some residential officetels have been sold at high prices. According to data from the Ministry of Land, Infrastructure and Transport, a 117-square-meter unit at 'Sindorim Prugio 1st' in Guro District, Seoul, was sold for 1.3 billion won in July, surpassing the previous high of 1.11 billion won by approximately 190 million won.
In Gyeonggi Province's Gwacheon City, an 84-square-meter unit at 'Hillstate Gwacheon Central' was sold for 1.12 billion won in August, up 350 million won from the 770 million won price in May of the same year.
Industry experts believe that rising apartment prices, loan regulations, and supply shortages have contributed to the recovery in demand for officetels. Medium to large officetels, often designed with bedrooms, bathrooms, and storage spaces similar to apartments, are increasingly seen as viable alternatives for actual residents.
However, the demand for officetels may vary based on location, product composition, and sale prices, so it remains to be seen if they will continue to be viewed solely as substitutes for apartments.
One industry insider noted, "The recent trend in the officetel market is a recovery in demand focused on medium to large products that can be lived in, rather than small investment products. With a decrease in new supply limiting available options, there is potential for demand to flow toward products that meet residential needs."
Meanwhile, in the fourth quarter of this year, eight locations nationwide are set to release a total of 5,666 officetel units.
POSCO E&C will introduce the 'The Sharp Osan Station Arc City Officetel' in October at the M1 block of the Seogyo 2 District in Osan, Gyeonggi Province. This mixed-use complex will feature 897 apartment units, 90 officetel units, and commercial facilities, with the officetels sized at 84 square meters. The units will include three bedrooms, two bathrooms, and a master bedroom dressing room, located approximately 600 meters from Osan Station on Subway Line 1.
In Incheon Cheongna, 'Cheongna Arc One Prugio' will be supplied. This development will consist of six buildings with five basement levels and a maximum of 49 floors, offering 868 apartment units sized 84 and 103 square meters, along with 987 officetel units sized 105 to 136 square meters, totaling 1,855 units. Plans are in place for an extension of Seoul Subway Line 7 and the establishment of a new elementary school.
Hyundai Engineering will supply 'Hillstate Seongnam Metroble' in Seongnam, Gyeonggi Province. This project will feature two buildings with six basement levels and a maximum of 34 floors, comprising 189 officetel units sized 74 to 95 square meters, located directly in front of the Dandaeogori Station on Subway Line 8.
In Guro District, Seoul, BYC's 'GD Metro Tower' is preparing for sale. This development will consist of two buildings with seven basement levels and a maximum of 40 floors, with a total of 1,095 residential officetel units, of which 770 units in Building B will range from 24 to 53 square meters. A direct connection to Guro Digital Complex Station on Subway Line 2 is a notable feature.
* This article has been translated by AI.
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