[Work Revolution] Zones Instead of Rooms... Homes Will Get Bigger and Offices Smaller

The Home Office Era Transforms the Concept of Space
Commercial Facilities Closing and Being Reorganized into Residential Areas
'Urban Reconstruction' Calls for New Considerations

Preference Shifts from Proximity to Work That Raised Housing Prices
to Functional Aspects Like Workspaces and Terraces

The novel coronavirus infection (COVID-19) is expected to lead to a significant expansion of telecommuting and remote work. Accordingly, experts foresee that homes, offices, and urban spaces will undergo changes together in the future. The amount of vacant space in cities is expected to increase, and demand for home offices is projected to grow. The photo shows a shared office in Seoul. (Photo by Sparkplus)

[Sejong=Asia Economy Reporter Kim Hyunjung] A major domestic commercial bank is considering eliminating its call center office located in the heart of Seoul. This is because, after reviewing the work-from-home status of call center employees implemented rapidly due to the COVID-19 pandemic, the work efficiency was not bad. While work efficiency compared to office attendance was only 45-50% at the introduction stage, it has now improved to about 80%. Except for personnel handling customer personal information with restricted access, the internal judgment is leaning toward having everyone work from home. No one has presented a convincing argument for the necessity of maintaining a separate office while bearing expensive rent.

An office (事務室ㆍOffice) is defined as a place where employees gather to work. However, as seen in the above case, COVID-19 raised the question of why we must gather in a specific place to work, and the answer is leaning toward no such necessity. Before COVID-19, skepticism about offices had progressed to shared offices to some extent, but it has now reached the point of 'denial of existence.'

◆The Home Office Era... Boundaries Collapse= As work-from-home culture for quarantine purposes rapidly spread, the world entered the 'home office' era without much preparation. Experts predict that this phenomenon will diversify and transform the concept of 'space.' Swiss architect Jacques Herzog, who won the Pritzker Prize in 2001, recently proposed the 'combination of office and residence' through his social network service (SNS). Herzog said, "It is possible to imagine a building where some floors are workplaces and others are residential, minimizing people's movement," adding, "This is a building architects have only dreamed of, but the necessity has expanded due to COVID-19." Mok Jingeon, CEO of shared office company SparkPlus, said, "COVID-19 has accelerated changes in corporate office utilization and work environments," and predicted, "In an unpredictable future, companies will reduce initial asset investment and lease risks and activate flexible work systems through flexible work methods."

Professor Yoo Hyunjun of Hongik University's College of Architecture and Urban Planning also predicted an increase in 'empty spaces' in cities in the same context. He emphasized, "Many commercial facilities will close, and various indoor spaces in downtown areas may be reorganized into residential facilities," adding, "It is time for new considerations for urban restructuring." He also suggested underground logistics systems for space efficiency.

Changes in the office market have already begun. In Silicon Valley, the cradle of venture startups in the United States, offices have also been used to flaunt a company's power. They provided welfare through state-of-the-art buildings, fancy cafeterias, bars, and various rest areas. Apple spent $5 billion (about 6 trillion won) just to build a spaceship-shaped headquarters. Every salaried worker in Korea has probably gazed in awe at photos of Google and Facebook headquarters. However, given the current situation, such investments have ultimately become 'foolish.' For example, Box, a U.S. cloud computing company, opened a headquarters decorated with a van-turned bar renovated four years ago but has left it empty for over two months. Canada's OpenText plans to close about 60 offices, half of its global offices.

However, there is also analysis that COVID-19 will not paralyze the functions of large cities. Herzog said, "COVID-19 will not cause cities themselves to disappear or people to move entirely to rural or suburban areas," adding, "The form of cities will be maintained, but people will seek ways to continue their jobs and lives within them."

The novel coronavirus infection (COVID-19) is expected to lead to a significant expansion of telecommuting and remote work. Accordingly, experts foresee that homes, offices, and urban spaces will undergo changes together in the future. The amount of vacant space in cities is expected to increase, and demand for home offices will expand. The photo shows a shared office in Seoul. (Photo by Sparkplus)

◆From Rooms to Zones in Home Composition= The revolution in workspaces triggered by COVID-19 also entails changes in residential spaces. In the short term, larger-sized homes will be preferred, and in the long term, the value of 'proximity to work' that endlessly drove up housing prices may become less useful than before.

First, the psychological meaning and role people assign to their homes have clearly increased compared to before COVID-19. According to a survey conducted by market research firm Embrain in April targeting 1,000 adults aged 19-59, 84% said they spend more time at home than before. This response rate was about 56.9% in a 2015 survey. Opinions that home is the most comfortable place accounted for 72.2%, and 85.6% wanted to create their own space within the home.

Experts also predict that home composition will become more diverse. To this end, demand for larger housing units will increase, and residential culture will shift from simply focusing on the number of rooms to 'zoning,' which allows composition into various zones. Chaesangwook, chief researcher of construction and real estate at Hana Financial Investment, explained, "First, the overall ownership area will increase to accommodate various functions in the home, strengthening preference for larger homes," adding, "The floor plan may become more complex with various functions such as spaces for family members to study and work, as well as terraces for relaxation." Cha emphasized, "Depending on the spread of COVID-19, concerns about the value of proximity to work have begun, unlike in the past," and stressed, "COVID-19 will undoubtedly bring significant changes to the existing apartment market and spatial design."