Unpopularity of Housing Market Is a Thing of the Past... Mixed-Use Residential and Officetel in Urban Areas Gain Popularity

This Year, 73.3% First-Choice Subscription Rate for Urban Residential Complexes... Urban Office-tels Also Attract Many Applicants
High Demand Due to Rich Urban Infrastructure and Various Convenience Facilities Within Complexes

The development of public transportation networks and large-scale housing developments are leading to an overall improvement in residential environments. However, there are not many residential facilities where all daily convenience amenities can be accessed within walking distance. In the case of large-scale housing developments, public transportation accessibility varies greatly depending on the location, and there is limited room for improvement in residential environments for apartments in urban areas.

For these reasons, recently in urban areas, residential complex developments or residential officetel facilities, which were previously less preferred due to being mixed with commercial facilities, are gaining popularity again.

According to Real Today, a real estate research specialist company, 15 residential-commercial complex developments were launched this year in Seoul and metropolitan cities (excluding housing developments), of which 11 complexes successfully closed their first application round, achieving a 73.3% first-round closing rate.

In particular, ‘Ssangyong The Platinum Haeundae’ in Jung-dong, Haeundae-gu, launched in April, recorded a competition rate of 226.45 to 1, and ‘Banwoldang Station Seohan Forest’ in Namsan-dong, Daegu, recorded 119.62 to 1. These are residential-commercial complexes located in urban areas that showed fierce subscription enthusiasm with hundreds of applicants per unit.

The competition rate for urban officetels was also excellent. The ‘Hillstate Doan’ residential officetel in Yuseong-gu, Daejeon, attracted 87,397 applicants for 392 units, and ‘Ssangyong The Platinum Seoul Station,’ the first officetel supplied in Seoul this year, recorded a subscription closing with 2,388 applicants for 576 units.

Industry experts say, “Recently, residential complex developments and officetels are attracting demand by emphasizing their strengths and compensating for their weaknesses. Especially, residential officetels are expected to gain even more popularity as alternative products amid the rising barriers to housing subscription.”

Hyundai Construction plans to launch ‘Hillstate Cheongnyangni Station’ in June through the development of Miju Shopping Center Building B in Cheongnyangni-dong, Dongdaemun-gu, Seoul’s urban area. The complex consists of 7 basement floors to 20 above-ground floors, 954 officetel units, neighborhood living facilities called ‘Hills Avenue Cheongnyangni Station,’ and public office facilities (Dong Resident Center). Cheongnyangni Station is located directly opposite the complex, and various living infrastructures such as Cheongnyangni Station, Lotte Department Store, Dongdaemun Tax Office, Dongdaemun Police Station, Seoul Sacred Heart Hospital, and University of Seoul are within walking distance.

Lotte Construction plans to launch ‘Gireum Station Area Lotte Castle Twin Gold’ in June through the redevelopment of the Gireum Station area at 542-1 Gireum-dong, Seongbuk-gu, Seoul. The complex consists of two buildings with 5 basement floors to 35 above-ground floors, totaling 395 residential-commercial units with exclusive areas of 59 and 84㎡. All units are small to medium-sized, under 84㎡, which are highly preferred by buyers, and about 55% of them, or 218 units, will be sold to the general public. The complex is a super-station area connected to Line 4 Gireum Station via an underground passage, offering excellent access to the central business district. Gireum Station is also expected to benefit from the upcoming Gangbuk Transverse Line connecting Mok-dong and Cheongnyangni, allowing the complex to enjoy the premium of a double station area.

HDC Hyundai Development Company plans to launch ‘Ulsan Taehwagang I’Park’ in June in the area of 196-21 Seongnam-dong, Jung-gu, Ulsan Metropolitan City. It is an apartel with 4 basement floors to 35 above-ground floors, totaling 377 units with exclusive areas of 31 and 59㎡. The complex faces the Taehwa River, and the apartel units start from the 7th floor above ground, allowing residents to enjoy the beautiful view of the Taehwa River from their homes. Additionally, the complex is located at the entrance of Seongnam-dong’s youthful commercial street, and shopping and cultural facilities such as New Core Outlet, Lotte Cinema, and Megabox are within walking distance, providing convenient living.