As Seoul housing prices continue to soar, demand is pouring into residential officetels. Compared to apartments, they are relatively less expensive and the subscription regulations are not as strict. Especially after the implementation of the three lease laws, as rental properties have become scarce, buyers are showing even more interest in residential officetel sales.
According to data from Real Estate 114, as of February, the average price per household for apartments in Seoul with an exclusive area of 60~85㎡ is 1.1745 billion KRW. This is a 16.59% increase compared to one year ago (March 2020). Small apartments show a similar trend. The average price per household for 60㎡ exclusive area is 799.34 million KRW, up 15.32% from a year ago.
As prices for move-in ready apartments skyrocket, the concentration of demand on newly launched complexes in Seoul is also intensifying. Due to the price ceiling system and other factors, some complexes are priced relatively lower than market prices. Consequently, as many buyers flock to these, the subscription winning scores have soared to the sky.
According to the Korea Real Estate Board, in March, ‘Jayang Haneulchae Ber’ supplied by Kolon Global in Jayang-dong, Gwangjin-gu, Seoul, recorded a 367.37 to 1 ratio for first-priority subscriptions. The average winning scores were 68.23 points for the 46㎡A type and 70 points for the 46㎡B type. The high competition rate was matched by equally high winning scores.
As a result, buyers are flocking to residential officetels being sold in Seoul. Since no subscription savings account is required, buyers with low scores can easily access them, and loans are relatively freer compared to apartments. Also, officetels are not classified as housing when applying for apartment subscriptions, allowing buyers to maintain first-priority subscription eligibility. Additionally, they have the advantage of being relatively less expensive than apartments in the same area.
In fact, recently sold residential officetels in Seoul have been very popular. In February, Hyundai Construction’s ‘Hillstate Cheonggye Central’ in Hwanghak-dong, Jung-gu, Seoul, recorded an average of 12 to 1 and sold out quickly. This officetel, designed as a residential product with floor plans and product designs comparable to apartments, was very popular among 2-3 person households.
In December last year, Hyundai Engineering’s ‘Hillstate Sindorim Station Central’ in Sindorim-dong, Guro-gu, Seoul, also recorded an average of 6.54 to 1 and sold out early. Its convenient location for commuting to business districts and its role as an alternative residential product to apartments attracted great interest from the 30s and 40s age groups.
A real estate expert said, “As Seoul housing prices continue to rise and it becomes harder to find rental properties, the enthusiasm of young people to own their own homes is heating up, increasing the popularity of residential officetels, which are relatively easier to access.” He added, “Officetels are located in urban areas with more convenient living infrastructure than apartments and offer easy access to business districts, so their preference among young generations is expected to remain high.”
Therefore, interest in branded residential officetels scheduled for spring sales is high. In April, Hyundai Construction will sell the residential officetel ‘Hillstate Jangan Central’ in Ilwon, Dongdaemun-gu, Seoul. This residential officetel consists of 369 units ranging from 38 to 78㎡ across 6 basement floors to 20 above-ground floors.
Hillstate Jangan Central is equipped with a wide transportation network using the Internal Circular Road and Dongbu Expressway, making it convenient for both private car and public transportation users. Additionally, Janghanpyeong Station on Subway Line 5 is within about 1 km, allowing direct access to Gwanghwamun and Yeouido. Being located in a major urban area, it also offers excellent infrastructure. Within walking distance are the complex shopping mall ‘Art Malling’ and ‘Lotte Cinema,’ as well as convenient access to ‘Lotte Department Store,’ ‘Sahmyook Seoul Hospital,’ and ‘Homeplus.’
A sales official said, “The residential officetel is designed to be suitable for newlyweds or families of three, and its location in the city center allows for convenient living, so we have been receiving many inquiries even before the sale.” He added, “Since no subscription savings account is required, not only young people with low scores but also homeowners are showing interest.”
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
