National Officetel Jeonse Prices Fall for the First Time in 9 Months... Seoul and Incheon See Increases

Average Jeonse Price of Office-tels Nationwide 141.886 Million KRW
April Busan Office-tel Jeonse Price Decreases by 256,000 KRW

[Asia Economy Reporter Onyu Lim] Last month, the average jeonse price of officetels nationwide fell for the first time in nine months. The real estate market downturn atmosphere detected in apartments seems to be spreading to officetels. However, since the jeonse prices of officetels in Seoul continue to rise, it is analyzed that polarization is occurring by region.

According to the Commercial Information Research Institute on the 26th, the average jeonse price of officetels nationwide last month was 141,886,000 KRW. This is a decrease of 7,000 KRW compared to 141,893,000 KRW in the previous month. Although the decline is not large, it is the first time in nine months since July 2019 that officetel jeonse prices have fallen.

Among the metropolitan areas in the Seoul Capital Area and local metropolitan cities, the region where the average officetel jeonse price fell the most compared to the previous month was Busan (down 256,000 KRW). This was followed by △Daegu (down 108,000 KRW) △Gwangju (down 104,000 KRW) △Gyeonggi (down 70,000 KRW) △Ulsan (down 68,000 KRW) △Daejeon (down 42,000 KRW).

There were also regions where the average officetel jeonse price rose. In Seoul, it rose by 116,000 KRW to 179,151,000 KRW compared to 179,035,000 KRW the previous month. In Incheon, it also slightly increased by 6,000 KRW to 80,908,000 KRW compared to the previous month.

The area in Seoul where officetel jeonse prices rose the most was the downtown area, increasing by 180,000 KRW. This was followed by △Northwest area (up 146,000 KRW) △Southeast area (up 133,000 KRW) △Southwest area (up 93,000 KRW) △Northeast area (up 67,000 KRW).

Researcher Hyuntaek Cho of the Commercial Information Research Institute said, "In April, the nationwide officetel sale prices fell, and the jeonse prices also slightly declined. However, in the Seoul Capital Area, especially Seoul, officetel sale and jeonse prices continue to rise, indicating that polarization by region is progressing in the officetel market as well."