Increased Interest in 'Officetels' in Seoul's Major Business Districts... Regulatory Balloon Effect

Ssyangyong The Platinum Seoul Station Bird's-eye View

[Asia Economy Reporter Moon Jiwon] As the government tightens real estate regulations, there is growing analysis that interest in officetels as an investment refuge is increasing.

On the 20th, according to the Korea Real Estate Board, the sales price index of officetels in Seoul rose by 0.13% last month, reaching 102.17. This index had shown the highest annual increase last year in December, rising by 0.18%.

In Jung-gu, Seoul, a traditional central business district, a 32㎡ officetel unit in Deoksugung Lotte Castle was traded for 312.5 million KRW in November last year. This price is about 37% higher than the 228.38 million KRW it was traded for in November 2016, when it was first occupied.

At Magoknaru Station Botanic Prugio City in Magok District, Seoul's representative industrial complex, a 22.17㎡ unit was traded for 154.68 million KRW in May 2017, but last month it was sold for up to 210 million KRW, marking about a 35% price increase.

In Jung-gu, Seoul, Ssangyong Construction plans to launch sales of 'Ssangyong The Platinum Seoul Station' this month. The building consists of one tower with 7 basement floors and 22 above-ground floors, comprising 576 units, all duplexes.

This complex is located near Chungjeongno Station, a transfer station between Subway Lines 2 and 5, and is also close to Seoul Station. Some units offer views of Seoul Station. Nearby, there are favorable developments such as the Seoul Station North Area redevelopment and the reconstruction of the Seosomun Building.

In Wangsimni, a key transportation hub in northern Seoul, 'Wangsimni Winners' is scheduled to be supplied. It is located a 5-minute walk from Wangsimni Station and a 3-minute walk (193m) from Sangwangsimni Station. The building has 2 basement floors and 14 above-ground floors.

In Yeouido, Taesan General Construction is currently selling officetels called 'Yeouido Poreidium.' It is located between Yeongdeungpo Station on Line 1 and Singil Station on Line 5. The supply scale consists of one building with 1 basement floor and 18 above-ground floors, totaling 153 units with exclusive areas ranging from 29 to 32㎡.