As apartment prices and jeonse rates rise in Seoul, officetels are becoming a viable alternative housing option, leading to a continued upward trend in the city's officetel market. While sales prices saw only a slight increase, both jeonse and monthly rental prices experienced more significant gains. In contrast, local markets are still facing supply pressures, resulting in weak sales and jeonse prices.
On July 15, the Korea Real Estate Agency released its '2026 Q2 Officetel Price Trend Survey.' According to the report, nationwide officetel sales prices fell by 0.30% compared to the previous quarter, while jeonse prices rose by 0.09% and monthly rents increased by 0.71%.
In Seoul, all three categories—sales, jeonse, and monthly rent—saw increases, leading the national market. The sales price of officetels in Seoul rose by 0.24%, a slight increase from the previous quarter's 0.23%. Jeonse prices increased by 0.40%, up from 0.24% in the prior quarter, while monthly rents surged by 0.90%, compared to 0.75% previously.
The Korea Real Estate Agency attributed the strength of the Seoul officetel market to growing demand as an alternative to apartments. The sales market remains robust, particularly in urban areas with excellent transportation links and near transit stations, while the jeonse market has seen increased demand for larger officetels. The monthly rental market continues to attract steady demand, especially in transit-accessible areas favored by students and professionals amid ongoing concerns about jeonse fraud.
In the greater Seoul area, the decline in sales prices has lessened, and jeonse prices have turned upward, indicating signs of recovery. Sales prices in the metropolitan area fell by 0.19%, a smaller drop compared to the previous quarter's decline of 0.33%. Jeonse prices rose by 0.17%, reversing the previous quarter's decline of 0.05%. Monthly rents increased by 0.78%, up from 0.69% in the prior quarter.
Conversely, local markets continue to struggle. Sales prices for officetels in regional areas dropped by 0.71%, a slight increase in the rate of decline from the previous quarter's 0.70%. Jeonse prices fell by 0.22%, although this was a smaller drop compared to the previous quarter's 0.26%. Monthly rents rose by 0.43%, but the increase was slower than the previous quarter's 0.54%.
Regionally, the largest declines in sales prices were seen in Busan (-0.84%), Daegu (-0.70%), Gwangju (-0.55%), and Incheon and Sejong (-0.53%). In terms of jeonse prices, increases were noted in Seoul (0.40%), Daejeon (0.19%), Gyeonggi (0.07%), and Ulsan (0.04%). Monthly rent increases were highest in Seoul (0.90%), Sejong (0.88%), Gyeonggi (0.76%), and Daejeon (0.66%).
The ratio of jeonse prices to sales prices averaged 86.04% nationwide, with the metropolitan area at 86.27% and Seoul at 84.50%. The conversion rate from jeonse to monthly rent was recorded at 6.62% nationwide and 6.06% in Seoul.
* This article has been translated by AI.
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