Where Are Officetels with Market Standard Value Under 100 Million Won Excluding Housing? 'Geomdan Station Beopjo Town Leasville S'

Office-tels with Standard Market Price Under 100 Million Won Excluding Housing Count, Tax Burden Relief Sparks Interest
Rich Development Prospects Make It a Popular Investment Product, 'Geomdan Station Legal Town Leasville S' Now Available

Investors are showing keen interest in ultra-small officetels with a standard market price not exceeding 100 million KRW. With the implementation of the 'Local Tax Act Amendment,' which significantly increased taxes for multi-homeowners, many are seeking breakthroughs through no-homeowner products.

According to Article 28 of the Enforcement Decree of the Local Tax Act, officetels with a standard market price of 100 million KRW or less contracted after August 12 this year are excluded from the housing count even if used for residential purposes. This allows buyers to maintain their no-homeowner status even after winning a subscription.

Most notably, these officetels are exempt from the recently increased acquisition tax surcharges. Under the existing tax law, acquisition tax on apartments was capped at 4% regardless of regulated areas. However, due to the July 10 measures, two-homeowners in regulated areas face an 8% acquisition tax, and those with three or more homes and corporations face a 12% rate. Even in non-regulated areas, three-homeowners are taxed at 8%, and those with four or more homes and corporations at 12%.

Now, residential officetels are no exception. Owning one residential officetel priced over 100 million KRW in regulated areas such as the metropolitan area will result in an 8% acquisition tax on future apartment purchases. Owning two residential officetels will increase the acquisition tax to 12% on future apartment purchases.

As the tax burden grows, attention is turning to officetel complexes currently being sold with a standard market price under 100 million KRW.

KR Industry of the Gyeryong Construction Group is currently selling 'Geomdan Station Legal Town Leshuville S' in the Wondang-dong area of Seo-gu, Incheon. The complex consists of 349 officetel units with exclusive areas of 20 to 28 square meters, spanning from six basement floors to 12 above-ground floors, along with neighborhood living facilities on the first and second floors.

By officetel size, there are 140 units of 20㎡, 16 units of 23㎡, 59 units of 24㎡, 34 units of 26㎡, and 100 units of 28㎡, providing practical sizes for small households such as singles, couples, and newlyweds.

Geomdan Station Legal Town Leshuville S is surrounded by significant development prospects. The most notable is the Geomdan Legal Town (scheduled for completion in March 2025). Following the passage of the amendment to the 'Act on the Establishment and Jurisdiction of Courts of Various Levels,' which includes the establishment of the Northern Branch of the Incheon District Court and the Northern Branch of the Incheon District Prosecutors' Office within Geomdan New Town, a courthouse of approximately 46,000㎡ will be built about 150 meters from the complex, roughly a 2-minute walk. Since the route from the subway station to the legal town passes right in front of the complex, a substantial influx of foot traffic is expected, activating the surrounding commercial district and greatly improving local residents' access to legal services.

In the case of legal towns already established in Munjeong-dong and Seocho-dong in Seoul, there are almost no vacancies in surrounding commercial facilities or officetels, so a low vacancy rate is also expected for Geomdan Legal Town.

Accessibility to Seoul is also expected to improve significantly. The Incheon Subway Line 1 Geomdan Extension Project (scheduled for 2024), which will add three new stations, is set to begin construction in the second half of this year. Among them, the Geomdan Station (tentative name) will be within about a 2-minute walk. From this station, transferring at Gyeyang Station to the Airport Railroad allows reaching Seoul Station in approximately 29 minutes. Additionally, the direct connection project between Seoul Subway Line 9 and the Airport Railroad (scheduled for 2023) will further shorten travel time to Seoul.

Extensions of Seoul Subway Line 5 (Gimpo Hangang Line) and Incheon Subway Line 2 are also underway. The extension of Seoul Subway Line 5, passing through Banghwa Station and Geomdan New Town, will enhance accessibility to Geomdan New Town. Likewise, Incheon Subway Line 2 will extend through Geomdan New Town to Ilsan, improving access to Ilsan Station and KINTEX Station on the GTX-A line.

Moreover, the GTX-D line for western metropolitan area transportation convenience is under consideration.

Inside Geomdan Station Legal Town Leshuville S, differentiated innovative designs enhance competitiveness. As a residential officetel, it moves away from the traditional studio layout by applying a 2-3 bay specialized design. Additionally, duplex and terrace structures, popular among all units, are introduced to avoid monotony and secure more space compared to units of the same size. Fully equipped with ample storage, dressing tables, and bedroom space, the 'ㄷ'-shaped kitchen layout maximizes convenience.

A sales representative stated, "Geomdan Station Legal Town Leshuville S has excellent future value due to major development prospects such as the station area and legal town, and active population inflow is expected to increase rental demand. Nearby officetels like 'Magoknaru Station Botanic Prugio City' recorded a sale price of 231 million KRW as of October this year on Naver Real Estate. However, according to the Seoul Metropolitan Government's local tax internet payment system, the standard market price is about 73 million KRW. Our officetel is also expected to have a standard market price under 100 million KRW after completion. Therefore, it is a reasonable investment option for small investors and a good opportunity for multi-homeowners to reduce their tax burden," he said.