As government regulations have reduced apartment supply in the metropolitan area, officetels have also become popular. In particular, complex developments in areas close to Seoul such as Seongnam, Suwon, and Wirye attract a line of buyers waiting for pre-sale announcements, as they offer not only residential purposes but also high investment value.
The reason officetels are gaining popularity is that it has become difficult to apply for apartment subscriptions due to regulations. Since officetels do not require subscription savings accounts or points, the demand base extends even to younger buyers. Especially in complex developments, residential-type officetels are built alongside apartments, allowing residents to enjoy the advantages of apartments as well, thus enabling them to secure both a home and an investment simultaneously.
This popularity can be felt in the pre-sale market. In June, Daewoo Engineering & Construction’s branded complex ‘Hwaseo Station Prugio Brilliel’ in Suwon, Gyeonggi Province, attracted 18,262 applicants for 452 apartment units (excluding special supply), recording an average competition rate of 40.4 to 1. The residential-type officetels also saw 14,463 applications for 460 units, with an average competition rate of 31.4 to 1.
Moreover, the reason why various buyers flock to residential-type officetels is that they are being converted from investment use to residential use, following nearby apartment prices. According to the Ministry of Land, Infrastructure and Transport’s real transaction price disclosure system, a residential-type officetel with a net floor area of 84㎡ in ‘Wirye Jiwel Prugio’ in Wirye New Town was traded for 1.235 billion KRW in July, entering the same price range as the ‘Wirye Lotte Castle’ apartment with the same 84㎡ net floor area located across the street at around 1.2 billion KRW. Earlier this year, this officetel was traded in the 800 million KRW range but has risen to a level similar to apartments.
Real estate experts say, “New apartments in the metropolitan area close to Seoul, such as Seongnam, Suwon, and Wirye, have average subscription scores exceeding 70 points, so younger buyers are showing interest in complex developments that include residential-type officetels.” They added, “Since residential-type officetels also form premiums comparable to apartments, a diverse range of buyers?from those dreaming of owning a home to those seeking investment opportunities?are flocking to these complexes.”
As complex developments emerge as the new trend, GS Engineering & Construction has announced the pre-sale of a premium complex in the Godeung district of Seongnam City. It is called ‘Pangyo Valley Xi.’ The complex will be supplied in blocks C1 to C3 in the Godeung district of Seongnam City, consisting of 350 apartment units (130 units in C1 block / 130 units in C2 block / 90 units in C3 block) with net floor areas of 60 to 84㎡ in 15 buildings from basement level 2 to 14 floors above ground, and 282 residential-type officetel units (108 units in C1 block / 112 units in C2 block / 62 units in C3 block) with net floor areas of 59 to 84㎡.
Pangyo Valley Xi is located in a golden location that enjoys both Gangnam and Pangyo. Using the Yongin-Seoul Expressway and Bundang-Naegok Expressway, it is possible to quickly reach Yangjae Station and Suseo Station within about 8 km. Taking Daewang Pangyo Road, Songpa Jangji Station about 6 km away and Pangyo Techno Valley about 3 km away are easily accessible. With many intercity buses in operation, public transportation is expected to be convenient.
Pangyo Techno Valley is a high-tech industrial complex established as Korea’s Silicon Valley, housing about 1,300 companies including Kakao, Nexon, and NCSoft, with approximately 65,000 employees. The approximately 430,000㎡ Pangyo 2nd Techno Valley will complete its first phase by the end of this year, with companies related to software, bio, semiconductors, and autonomous vehicles expected to move in. Additionally, the Pangyo 3rd Techno Valley is under development in the Geumto district of Seongnam, aiming for completion in 2023.
Also, the residential-type officetels built alongside apartments offer the advantage that younger buyers who do not meet the stricter apartment subscription conditions can secure a home through officetel subscriptions. Officetels do not require subscription savings accounts, and anyone aged 19 or older can apply regardless of the number of houses owned or previous wins. Especially, the officetels supplied in the C3 block are composed of fewer than 100 units, making it likely that pre-sale rights can be resold.
The product quality is also excellent. The design applies 3 to 4 Bay layouts with kitchen windows that allow cross ventilation, which can replace apartments, enhancing residential satisfaction. In addition, Xi’s unique specialized design ‘Sysclean’ is provided free of charge in all units. Sysclean is a ventilation-type air purification system that ventilates and purifies the air automatically without opening windows. Installed on each unit’s ceiling, it is expected to provide clean and safe air 24 hours a day without separate ventilation.
Options that were only available for a fee in other apartments or officetels will be provided free of charge, enhancing residents’ convenience and prestige. The high-end landscaping shared by apartments and residential-type officetels is expected to make residents feel as if their home is located inside a park.
The model house will be located in Gumi-dong 152 area, Bundang-gu, Seongnam City, and a cyber model house will be operated simultaneously to prevent the spread of COVID-19. Move-in is scheduled for January 2023.
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