The Seoul officetel market is experiencing a widening gap between sales and rental trends. While sales prices remain stagnant, monthly rents have surged across all regions of Seoul, nearing an average of 1 million won. The increase in monthly rents has outpaced that of jeonse (long-term lease), highlighting a significant shift in rental demand towards monthly payments.
According to the Korea Real Estate Agency's '2026 Q3 Officetel Price Trend Survey' released on October 25, the average monthly rent for officetels in Seoul rose by 1.02% in the third quarter compared to the previous quarter.
During the same period, sales prices increased by only 0.07%, while jeonse prices rose by 0.37%. The rise in monthly rents was approximately 15 times greater than that of sales and more than double that of jeonse.
The average monthly rent for officetels in Seoul approached 1 million won, with September figures showing an average of 961,000 won.
This increase in monthly rents was not limited to specific areas. The downtown area recorded the highest rent increase at 1.24% in Q3, followed by the northeastern region at 1.17%, southeastern region at 1.11%, northwestern region at 0.94%, and southwestern region at 0.88%, indicating growth across all areas of Seoul.
In contrast, the sales market remains stagnant. The sales price for officetels in Seoul saw a minimal increase of 0.07% in Q3, indicating a state of stagnation.
Despite rising apartment prices, the recovery of sales demand for officetels has been relatively slow, while rental demand continues to grow steadily. This trend is attributed to increased financial burdens for home purchases, coupled with lending restrictions and rising interest rates, leading more individuals to remain in the rental market.
The sluggish sales prices are seen as a factor hindering the recovery of the officetel investment market. Although rents are rising rapidly, this increase has not directly translated into a surge in buying interest for officetels.
Rental yields in Seoul are also relatively low. In September, the rental yield for officetels in Seoul was 5.15%, below the national average of 5.90%, marking the lowest level among surveyed regions.
Rental yield is calculated based on annual rental income relative to the actual investment amount, excluding the deposit from the sales price. Even with rising rents, the high sales prices and deposit levels in Seoul result in relatively low yields for investors.
The nature of the officetel market is also changing. Previously viewed as a typical income-generating real estate option for small investments and rental income, the market is now increasingly influenced by actual residency and tenant demand rather than investment interest.
A real estate industry insider noted, "The officetel market is continuing a structure where rental prices rise without a recovery in sales prices. If the stagnation in the sales market and the rise in monthly rents persist, it could lead to a dual structure where tenants face increased housing costs while the investment market remains constrained."
* This article has been translated by AI.
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