Seoul Downtown Office District Adjacent Seoul Downtown Office-Tel 'Ellui Illoop'

- High investor interest in small-scale investments in prime locations of Seoul's city center with high rents
- Proximity to work, subway access, lifestyle and cultural infrastructure, specialized design, and abundant rental demand enhance investment value

As the government’s strong real estate regulations, including the ‘Amendment to the Enforcement Decree of the Housing Act’ implemented last February to curb apartment investment demand, continue to intensify, officetels that can avoid regulations while promising stable rental income are gaining popularity among investors.

In particular, officetels located in major domestic business districts such as Jongno, Yeouido, and Gangnam are considered popular areas in the officetel market because stable rental income is guaranteed thanks to the demand from office workers.

Among them, officetels located in the Seoul downtown area stand out in terms of investment value due to their proximity to the largest domestic business district, the CBD (Central Business District of Seoul), enabling a short commute and access to abundant living infrastructure in the heart of Seoul.

In fact, as of January, the market price of officetels in the Seoul downtown area was the highest in the country. According to the Korea Real Estate Board, while the average monthly rent for officetels nationwide was about 664,000 KRW and the average monthly rent in Seoul was about 779,000 KRW, the Seoul downtown area recorded approximately 945,000 KRW. Even within Seoul, the price was about 332,000 KRW higher than the lowest area, the Northeast region (about 613,000 KRW).

Moreover, the Seoul downtown area ranked first in annual rental yield within Seoul. According to officetel rental yield data provided by Real Estate 114 Reps, as of 2020, the rental yield of officetels in the Seoul downtown area was about 4.59%, ranking first, followed by Mapo/Yeouido area (about 4.46%) in second place, and Gangnam area (about 4.45%) in third. This result proves that the downtown area, which includes the CBD, enjoys abundant demand due to factors such as proximity to workplaces and living environment, but benefits from scarcity value because the supply of officetels is limited.

A real estate official stated, “As government housing-related regulations, including the ‘Amendment to the Enforcement Decree of the Housing Act,’ continue to strengthen, many investors who have been blocked from investment options are turning their attention to officetels, which avoid housing regulations and have stable rental demand.” He added, “Among them, officetels in the Seoul downtown area, which have abundant demand and high scarcity value, are emerging as the optimal location for officetel investment, and their popularity is hot.”

Meanwhile, ‘Ellui Illoop,’ a residential-type officetel, is scheduled to be supplied at the center of the so-called double business district, which houses about 800,000 office workers with the CBD on the left and Dongdaemun Fashion Town on the right, attracting much attention from investors.

‘Ellui Illoop’ boasts an excellent location with triple transfer station access. It is located right next to Euljiro 4-ga Station, where transfers between Line 2 and Line 5 are possible, and within walking distance of Dongdaemun History & Culture Park Station, which serves Lines 2, 4, and 5, and Jongno 5-ga Station on Line 1. Notably, Euljiro 4-ga Station and Dongdaemun History & Culture Park Station are connected by an underground passage, giving ‘Ellui Illoop’ the advantage of not only being ultra-close to stations but also enabling safe pedestrian movement.

The location environment is also a point of pride. The Euljiro area, where ‘Ellui Illoop’ is located, has recently been called “Hipjiro” due to its popularity among the younger generation. The area offers various living infrastructures that meet the needs of young people and provides access to DDP (Dongdaemun Design Plaza), where exhibitions and various cultural events are held, as well as to Gwangjang Market and Dongdaemun Fashion Street, which are lined with popular restaurants and shopping malls. In addition, residents can enjoy a pleasant natural environment with Cheonggyecheon Stream and Hunryeonwon Park, as well as convenient living conditions with large medical facilities such as the National Medical Center, Paik Hospital, and Seoul National University Hospital. ‘Ellui Illoop,’ located in the heart of Euljiro, is expected to be recognized as a residential officetel with the best infrastructure that allows residents to enjoy life, culture, leisure, and relaxation all nearby.

Along with its excellent location, the unique design and future value of ‘Ellui Illoop’ are also attracting attention. Reflecting the characteristics of the area with the highest proportion of single-person households in Seoul, a 1.5-room floor plan preferred by 1-2 person households is applied to all units. Additionally, ‘Ellui Illoop’ features a special customized design. All units will have a clean care through-structure equipped with a dry washbasin and a Styler space, which were previously only found in luxury hotels, providing a comfortable living space.

The investment value is also special. Jung-gu, where the complex is located, has the highest number of single-person households in Seoul, and there is abundant waiting demand for small officetels, making steady rental income realization expected. Furthermore, the Sewoon redevelopment project near ‘Ellui Illoop’ is scheduled to be completed in time for the move-in period, allowing residents to fully enjoy the benefits of local development.

Meanwhile, ‘Ellui Illoop’ will be built in Jung-gu, Seoul, with a complex size ranging from two basement floors to 11 floors above ground, offering 96 officetel units with exclusive areas of 35 to 45 square meters, along with neighborhood living facilities. The promotional center for ‘Ellui Illoop’ is located in Jung-gu, Seoul.