‘10-Year Lease Guarantee’ Introduced to Secure Investment Stability in ‘Eliat Gangdong’

- Office-tels Introducing 'Guaranteed Rental Income System' to Reduce Vacancy Risk Attract Investors
- 'Eliat Gangdong' with Small Area Layout Suitable for 1-2 Person Households and Comfortable Transportation

The ‘Eliat Gangdong’ officetel, supplied by Yeongmu Industrial Development in the Ilwon area of Gangdong-gu, Seoul, is attracting significant attention through the introduction of a ‘10-year Lease Guarantee System.’

The 10-year Lease Guarantee System is a method where, if vacancies occur or the guaranteed yield falls below the promised rate during the 10-year period, the monthly rent is compensated. From the perspective of buyers, this allows for excellent returns regardless of market conditions and significantly reduces vacancy risks, drawing considerable interest.

Recently, as officetel supply has increased and alternatives have grown?especially since officetels have been relatively free from housing regulations?careful selection has become important. Officetels adopting the lease income guarantee system are gaining attention as competitive products because they reduce vacancy risks and provide stable returns.

According to a sales representative, “As risk management becomes more important in investment, investors are showing increased interest in new officetels that guarantee rental income,” adding, “Among them, ‘Eliat Gangdong,’ which offers convenient transportation and promising future value, is emerging as a competitive investment product.”

‘Eliat Gangdong,’ located in the Ilwon area of Gangdong-gu, Seoul, consists of 99 units across basement levels 2 to 15 floors above ground, with exclusive areas ranging from 19 to 30㎡. The units are composed of ▲20 units of 19㎡ ▲78 units of 25㎡ ▲1 unit of 30㎡. With an exclusive rate of 62%, which is higher than typical officetels, it features studio-type and 1.5-room layouts optimized for 1-2 person households.

Despite the resale restrictions on pre-sale rights applied in speculative overheated districts, this product is exempt as it has fewer than 100 units, allowing resale of pre-sale rights. Additionally, anyone can contract regardless of subscription savings account status, residence restrictions, or home ownership, and with low initial costs, it offers an opportunity for not only investors but also newlyweds or young professionals lacking large sums of money to own a home.

The complex is located in a double station area accessible to Seoul Subway Line 5’s Gangdong Station and Gildong Station. Additionally, it is near Cheonho Station on Lines 5 and 8, and the Gildong Ecological Park Station will be established as part of the Line 9 extension project. Once the Line 9 extension is completed, commuting to downtown, Gangnam, and Gyeonggi areas will become more convenient, expected to attract demand from those preferring proximity to work.

‘Eliat Gangdong’ also boasts abundant infrastructure. Right in front of the complex are Gangdong Seongsim Hospital, Bokjori Market, and Gildong Natural Ecological Park, and various convenience facilities can be accessed around Cheonho Station. Cheonho-dong Rodeo Street offers shopping malls, Lotte Cinema, and various shopping and cultural facilities, while nearby neighborhood parks, Olympic Park, and Hangang Park provide a pleasant natural environment.

Strong underlying demand should not be overlooked. The Godeok Biz Valley, expected to house about 150 large and small companies, is scheduled for completion in 2023, and the Dunchon Jugong Apartment reconstruction project, with about 12,000 households, is underway and expected to be completed by June 2023. The complex has a catchment population of about 50,000 within Gangdong-gu, including Cheonho-dong and Seongnae-dong, with additional demand anticipated from the planned Godeok Biz Valley and Gangdong Advanced Business Complex.

Meanwhile, the ‘Eliat Gangdong’ promotional center is located in Songpa-gu, Seoul.