Officetels with fewer than 100 units have no resale restrictions, favoring liquidity and investment
Low entry barriers make them popular among 2030 generation with low subscription scores as a way to own a home
Recently, the popularity of residential officetels has been remarkable. Unlike small officetels purchased for rental income, medium-sized officetels are seeing fierce competition in subscription due to increased interest from actual buyers aiming to own a home.
In January, the ‘Pangyo Valley Xi Officetel,’ which offered 203 units of 59㎡ and 84㎡ types, attracted 65,503 applicants, recording an average competition rate of 232 to 1. This was about four times higher than the average subscription competition rate of 64 to 1 for the previously sold ‘Pangyo Valley Xi’ apartments.
Among them, the highest competition rate was for Complex 3, where 51,709 applicants competed for 62 units, pushing the competition rate up to 834 to 1. This was because when fewer than 100 units are offered, there are no resale restrictions even in speculative overheated zones or regulated areas, attracting many buyers.
In Daegu as well, the ‘Jungangno Station Prugio The Central’ officetel, sold last December, recorded an average competition rate of 75.2 to 1, with the 84㎡A type (35 units) reaching 103 to 1. Considering that officetels are generally regarded as ‘hit complexes’ when the subscription competition rate exceeds 5 to 1, these are extraordinary subscription rates.
It is also analyzed that the recent surge in apartment prices and the increasing burden of monthly rent have led actual buyers to turn their attention to officetels. This means that people in their 20s and 30s, who fail to secure apartment subscription rights due to low points, have chosen officetels as an alternative with lower entry barriers. Officetels can be subscribed to by anyone aged 19 or older regardless of subscription savings account, residence restrictions, or home ownership status. Mortgage loans (LTV) can also be obtained up to 70% of the sale price.
This trend is expected to continue, increasing interest in residential officetels in good locations that are about to be sold. In particular, the popularity of officetels within apartment complexes with fewer than 100 units is expected to rise further.
Reflecting this situation, ‘Daegu Station Xi The Star,’ scheduled for sale next month, has been gaining early word-of-mouth attention from buyers. This complex is a residential-commercial mixed apartment located in the Ilwon area of Buk-gu, Daegu, consisting of three buildings with 5 basement floors and up to 48 floors above ground, totaling 505 households: 424 apartment units and 81 residential officetel units. By exclusive area, the apartments include △77㎡ 84 units, △84㎡A 84 units, △84㎡B 169 units, △84㎡C 84 units, △113㎡ 3 units, and the residential officetel consists of 81 units of 84㎡.
‘Daegu Station Xi The Star’ is located in an ultra-station area directly adjacent to Daegu Station. It is within walking distance to Daegu Metro Line 1 and the Gyeongbu Line Daegu Station, making travel inside and outside the city convenient. Moreover, Taepyeong-ro and Sincheon-daero roads right in front provide easy access to anywhere in Daegu city.
Another feature is the abundant urban living infrastructure. Lotte Department Store is located right in front of the complex, and the Dongseong-ro commercial district, large marts, and Chilseong Market are conveniently accessible within walking distance. Additionally, various cultural facilities such as the Concert House, Opera House, Samsung Creative Campus, and the Daegu Complex Sports Town?which includes DGB Park, gymnasium, ice rink, and squash courts?are nearby, providing an optimal residential environment for buyers seeking work-life balance. Also, excellent educational environments are an advantage, with Oksan Elementary School, Kyungmyeong Girls’ Middle and High Schools, and Chilseong High School within walking distance. It is also convenient for using the Jimsan-dong and Dongseong-ro academy districts, satisfying the demands of parents highly interested in education.
Furthermore, the fact that this is a 48-floor residential-commercial mixed apartment, which will become rare in Daegu, is another major point of interest. According to Daegu city ordinances, from May 31 of this year, residential-commercial mixed projects applying for permits will be limited to a maximum floor area ratio of 450%, making the supply of high-rise residential-commercial mixed apartments practically difficult. Therefore, the popularity of projects that have already obtained permits is expected to increase.
In particular, the officetels in this complex have fewer than 100 units, so there are no resale restrictions, and subscriptions are free regardless of the housing subscription system, likely attracting more attention than apartments.
A local real estate official said, “As an ultra-station area near Daegu Station and a Xi brand urban residential-commercial mixed apartment, inquiries have been ongoing since last year. It is expected to become a landmark complex in the region, and since there are no resale restrictions on the officetels, it is anticipated that not only actual buyers but also investors will flock here.”
The model house will be set up in Dalseo-gu.
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