Office-tel Jeonse Rate Highest Since 2018... Residential Office-tel Interest Expected to Peak

- According to Korea Real Estate Board price data, nationwide officetel jeonse rate reached a record high of 84.61% since January 2018
- Officetels sold at apartment jeonse prices... Continued interest expected in supplying high-quality residential officetels

It has been revealed that residential officetels are particularly gaining popularity in areas recording high officetel jeonse price ratios. Following last year, demand continues to pour into residential officetels supplied this year, with expectations that interest will remain high through this month.

According to a review of price data from the Korea Real Estate Board by real estate research firm Realtoday, the nationwide officetel jeonse-to-sale price ratio in April reached 84.61%, the highest since January 2018. In particular, the April figures also hit record highs in the metropolitan area (85.38%), Daegu (82.98%), Daejeon (86.19%), and other provinces (81.39%).

Among all cities and provinces nationwide, Sejong recorded the highest jeonse price ratio at 92.29%, followed by Incheon (87.08%) and Gyeonggi (86.6%).

Furthermore, according to statistics from the Korea Real Estate Board, the average apartment jeonse price in Sejong in February was 3.618 million KRW per square meter, while the average officetel sale price was 3.595 million KRW per square meter. Similarly, in Daegu, the average apartment jeonse price in February was 3.469 million KRW per square meter, and the average officetel sale price was 3.525 million KRW per square meter, showing little difference between apartment jeonse and sale prices.

Residential officetels supplied in regions with jeonse price ratios close to or exceeding the national average (84.61%) have enjoyed high popularity in the sales market. For example, the ‘Sejong Richensia Familier Officetel’ supplied in Sejong, which had the highest jeonse price ratio, recorded an average competition rate of 30.92 to 1 in March. Also, the ‘Dongdaegu Station Gold Class’ officetel, supplied in Daegu in April, achieved an early sell-out with a high average competition rate of 36 to 1.

This is likely because the high jeonse prices mean the difference between sale prices and jeonse amounts is not large, resulting in a lower initial financial burden and relatively less concern about switching properties. Especially in areas with high jeonse price ratios, demand for gap investment is also strong, creating long-term expectations for price appreciation and attracting investors’ attention.

A Realtoday official stated, “Residential officetels have improved so much that they are called alternatives to apartments, yet they still offer the advantage of enabling home ownership at more reasonable prices compared to apartments,” adding, “As products traditionally exclusive to apartments are being introduced one after another, improving residential convenience, those hoping to purchase a home at a reasonable price should pay attention to the sales of residential officetels.”

In Daegu, which recorded a jeonse price ratio of 82.98%, Daewoo Construction is launching sales. Daewoo Construction will accept applications on the 9th for the ‘Bukgu Office Station Prugio Edufore’ officetel located in the Buk-gu area of Daegu. The complex consists of 568 units, including 499 apartments and 69 officetel units, spanning from two basement floors to 27 floors above ground. The officetel units include 23 units of 84㎡A and 46 units of 84㎡B.

Daegu, where the ‘Bukgu Office Station Prugio Edufore’ officetel is located, is expected to attract high interest as residential officetels continue to sell out. For instance, the ‘Hillstate Dalseong Park Station’ officetel supplied recently by Hyundai Construction in the Taepyeong-ro area of Daegu received a total of 12,941 applications for 72 units, resulting in a competition rate of 179.7 to 1.

Additionally, the ‘Bukgu Office Station Prugio Edufore’ officetel features excellent designs comparable to apartment layouts, including three bedrooms, two bathrooms, a living room, and a dressing room. All types come with system air conditioners (living room + bedroom 1), cooktops, electric ovens, and built-in kimchi refrigerators installed free of charge. Bedroom 2 and 3 can be combined (free of charge), and various optional items (for a fee) allow efficient and well-organized space configuration.

Along with the excellent product quality provided by Prugio and the comfortable residential officetel environment within the complex, it is evaluated as an excellent product for both investment and actual residence. Applications for ‘Bukgu Office Station Prugio Edufore’ will be accepted on its website starting June 9.

In Gyeonggi, which recorded a jeonse price ratio of 86.6%, real estate developer GL plans to open a promotional center for ‘GL Metrocity Hangang’ and the officetel ‘THE GL’ located in blocks 11 and 12 of the Deok-eun Urban Development Project District in Goyang City. The complex consists of two buildings from six basement floors to 21 floors above ground, with a total floor area of approximately 128,782㎡ and 832 units in the knowledge industry center ‘GL Metrocity Hangang,’ and one building up to 23 floors above ground with 420 officetel units ranging from 29 to 60㎡ in ‘THE GL,’ as well as 58 neighborhood living facilities covering the entire first floor, forming a premium mixed-use complex knowledge industry center.

In Seongnam City’s Pangyo 2nd Techno Valley C2 block, ‘Pangyo Ice Square’ is currently being sold. The supply includes 251 officetel units ranging from 23 to 84㎡ and 45 commercial facilities. This complex is a mixed-use development combining officetels, offices, commercial, and cultural spaces. It boasts abundant demand as it is located in Pangyo 2nd Techno Valley, where about 750 companies are expected to move in.