As the proportion of 1-2 person households steadily rises, residential officetels that can replace small apartments are gaining attention.
According to future population and household projection data prepared by Statistics Korea based on the Population and Housing Census, the proportion of 1-2 person households among all households in the country was 46.59% in 2009, 53.3% in 2015, and 57.29% in 2019, and it is expected to continue expanding to 62.4% in 2025 and 71.3% in 2045.
On the other hand, an analysis of housing stock levels relative to small housing households released earlier this year by the Korea Research Institute for Human Settlements shows that although demand for small housing is increasing due to the rise in 1-2 person households and elderly households, decrease in household size, housing price increases, and improvements in housing quality, there is a shortage of nearly 500,000 small housing units in the metropolitan area alone.
Meanwhile, small housing was so popular in this year’s real estate sales market that the term “sold out” became a formula. Most small housing-level real estate, including ‘Bupyeong Station Harrington Place,’ which recently recorded a subscription competition rate as high as 14.7 to 1, sold out with high competition rates.
The price increase trend of residential officetels is also clear. The officetel with a net area of 84㎡ at ‘Hillstate Samsong Station’ in Samsong-dong, Deogyang-gu, Goyang-si, Gyeonggi Province, which moved in June 2019, was traded at a record high of 870 million KRW last May. This price is more than 400 million KRW higher than the original sale price of 376.8 million to 422.7 million KRW.
An industry insider said, “While the windfall benefits from real estate policies are a clear reason, the explosive demand for small-sized units due to the increase in 1-2 person populations is the biggest reason for the popularity of residential officetels,” adding, “For the time being, the popularity of residential officetels that can replace small apartments will continue to rise.”
In this context, ‘Han Sung Phil House Radnice,’ a residential officetel by Han Sung Construction scheduled for supply next month in the very center of Cheonan, is attracting attention as a residential product that can replace apartments.
‘Han Sung Phil House Radnice’ is a residential officetel with high scarcity due to supply shortage, offering various unit sizes, located in the prime area of Sinbuldang in Cheonan, allowing direct access to premium living infrastructure in the area, and applying apartment-grade finishing materials instead of officetel-grade ones to solve issues such as soundproofing, thus drawing the attention of potential buyers.
In particular, ‘Han Sung Phil House Radnice’ is a residential officetel where, despite being in a regulated area, the Loan-to-Value (LTV) ratio is applied up to 70%, and there is no need to submit a funding plan. Another advantage is that it is not counted as a house when applying for subscriptions.
‘Han Sung Phil House Radnice’ is located in Cheonan-si, Chungcheongnam-do, and is planned to be built with 637 units from basement level 4 to ground level 15, with net areas ranging from 26 to 84㎡. By unit size, it consists of △26㎡ 65 units △27㎡ 39 units △28㎡ 182 units △36㎡ 104 units △59㎡ 221 units △84㎡ 26 units, offering a wide range of choices for buyers.
It faces Cheonan City Hall, and large shopping facilities such as Galleria, E-Mart, Lotte Mart, and Costco are within walking distance. Cultural facilities like CGV and Lotte Cinema, as well as Cheonan Sports Complex, swimming pool, bowling alley, and sports park, are also nearby.
Regarding transportation, KTX and SRT Cheonan-Asan Station are within 3 km, and Line 1 Asan Station, Gyeongbu Expressway, Cheonan-Nonsan/Cheonan-Pyeongtaek Expressway (opening in 2023), and Asan-Cheongju Expressway (scheduled to open in 2022) are accessible.
Additionally, the Sinbuldang area where the complex is located has educational enthusiasm comparable to Daechi-dong in Seoul, with a concentration of prestigious school districts and academies, as well as cultural, commercial, and medical infrastructure. There is especially abundant demand from major corporations such as Samsung SDS and administrative facilities like Cheonan City Hall, and based on this, urban infrastructure is being expanded, leading to explosive population inflow into the area.
A sales representative for ‘Han Sung Phil House Radnice’ said, “‘Han Sung Phil House Radnice’ is a residential officetel located in the central commercial area of the Sinbuldang district, making it easy to use cultural, transportation, and living convenience facilities,” adding, “As a result, these advantages have already spread by word of mouth, and many buyers and investors are inquiring.”
Meanwhile, ‘Han Sung Phil House Radnice’ does not require a subscription savings account, and anyone aged 19 or older residing in South Korea can apply regardless of re-winning restrictions, residence restrictions, or the number of houses owned.
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