Which Pre-Sold Housing Products Avoided Real Estate Regulations Starting in July?

Until recently, residential officetels have served as an alternative to apartments, supported by factors such as relatively fewer regulations and easier subscription application conditions compared to apartments. Anyone aged 19 or older can apply for subscription, attracting significant interest from actual demanders in their 20s and 30s who generally have lower scoring points. Additionally, even while owning an officetel, one can maintain first-priority subscription eligibility, which has consistently drawn attention from investors.

However, according to financial authorities, starting from July, when obtaining a mortgage loan for apartments exceeding 600 million KRW in regulated areas, a total debt service ratio (DSR) of 40% per individual will be applied. Furthermore, loan-to-value (LTV) and DSR regulations are being introduced and gradually expanded for non-residential mortgage loans such as land and officetels.

Following this news, pre-sold officetels that are exempt from these regulations have been receiving considerable attention. Officetels with resident recruitment announcements made by May 16 are not subject to these regulations. ‘Hillstate Jangan Central,’ sold by Hyundai Engineering & Construction, meets these conditions and is not subject to regulations. Moreover, it is conducting first-come, first-served sales in Dongdaemun-gu, Seoul, attracting much interest.

The complex consists of a total of 369 units ranging from basement level 6 to ground level 20, with exclusive areas of 38 to 78 square meters. Residential officetels are located from the 3rd to the 20th floor, and neighborhood living facilities are situated from basement level 1 to ground level 2. By exclusive area, there are 72 units of 38㎡ A·B·C (some duplex), 36 units of 57㎡ A·B (some duplex), 126 units of 59㎡ A·B·C·D·E·F (some duplex), and 135 units of 78㎡ A·B, mainly consisting of small apartment alternative residential products. This has garnered significant interest, resulting in a high competition rate of up to 23 to 1 in subscription.

The complex is located in Dongdaemun-gu, Seoul, providing convenient transportation to Seoul’s business districts. Additionally, Janghanpyeong Station on Line 5 is about 1 km away, allowing direct access to Yeouido, and major business areas such as City Hall (24 minutes) and Gangnam (31 minutes) are reachable within approximately 30 minutes. Furthermore, the Myeonmok Line, connecting Cheongnyangni Station through Jangan-dong to Sinnye Station, is planned with a construction target within 2030. The surrounding area also benefits from a wide-area transportation network using the Internal Circulation Road and Dongbu Expressway, making car travel convenient.

Moreover, various transportation improvements are planned. The ‘Dongbu Expressway Undergrounding’ project began construction this year and is scheduled to open in 2026. Nearby Cheongnyangni Station will be served by the Metropolitan Area Express Railway (GTX) Line B (construction started in 2022) and Line C (construction started in 2021), significantly enhancing accessibility to major business districts such as Dongtan in Gyeonggi Province and Songdo in Incheon.

Located in the main commercial area of Jangan-dong, a major urban district, the complex is surrounded by abundant living infrastructure. Within walking distance are the Art Malling Jangan branch, Lotte Cinema Jangan branch, Lotte Department Store Cheongnyangni branch, Samyuk Seoul Hospital, Homeplus Dongdaemun branch, and various other convenient facilities.

Additionally, a sports park stretches along the Jungnangcheon River, located about a 5-minute walk from the complex, offering various sports facilities such as an outdoor swimming pool, foot volleyball court, and basketball court. There are also plentiful green spaces like Jangpyeong Neighborhood Park, Jangan Neighborhood Park, Dapsimni Park, and Baebongsan Trail, allowing residents to enjoy leisure activities comfortably within the city.

A sales representative stated, “Starting in July, real estate regulations such as the introduction of loan-to-value (LTV) ratios will be applied not only to apartments but also to commercial properties and officetels. Since fewer regulations have been an advantage of officetels, after the introduction of these regulations, many prospective officetel residents are turning their attention to pre-sold complexes that are exempt from regulations, resulting in numerous inquiries.”