"Location is Competitiveness" Popularity of Officetels Located in Regional Centers Continues

New officetel developments continue to attract steady interest in the second half of the year. However, as the supply volume increases, buyers are beginning to distinguish the 'wheat from the chaff,' and ultimately, location remains a crucial competitive advantage that determines sales performance.

Officetels that gained high popularity in this year's subscription market stood out for their locations. For example, the ‘Guri Station The Live Dwell’ launched in June this year is situated in the station area of Guri Station on the Gyeongui-Jungang Line, offering convenient commuting and located in the central area of Guri City with abundant living infrastructure. The complex recorded a competition rate of 306 to 1 in the subscription results.

The same applies to regional areas. The ‘Seomyeon Dongwon City Vista,’ also launched in the same month, is located right in front of Bujeon Station on Busan Metro Line 1, allowing convenient access to the Seomyeon central living area. The complex recorded a competition rate of 20.05 to 1 in the subscription results.

Since officetels mainly attract relatively younger generations as their primary demand base, there is a strong preference for central locations that offer convenient commuting and proximity to lifestyle amenities. Officetels with such locational advantages have abundant hinterland demand, excellent liquidity?which is often cited as a drawback?and significant price appreciation potential.

According to data from Real Estate 114, the sale price per 3.3㎡ of the ‘Lotte Castle President (occupied in February 2009)’ officetel increased by 30.4% over the past year (June 2020 to June 2021), significantly outperforming the average price increase of 3.29% for officetels in Mapo-gu during the same period. The complex is located in the station area of Gongdeok Station, making commuting to downtown Seoul convenient and offering abundant infrastructure.

Also, the sale price per 3.3㎡ of the ‘Gwanggyo Eduheim 1309’ officetel rose by 43.5% over the past year, exceeding the 15.9% average price increase for officetels in Yeongtong-gu during the same period. This complex is situated in the central location of Gwanggyo New Town, close to Gwanggyo Techno Valley and Gwanggyo Jungang Station on the Shinbundang Line.

An industry insider said, “While preferences for officetel products may vary depending on buyers’ lifestyles and social trends, location is less affected by these external factors, so officetels established in excellent locations tend to maintain steady demand. Especially, central locations within the region, station areas, and places with convenient commuting have limited land availability, making them highly scarce. Therefore, location should be the most important factor when choosing an officetel.”

Amid this, new officetels supplied in key locations within regions are drawing attention. Hyundai Engineering is currently selling ‘Hillstate Dongtan Station Multiplier.’ This complex consists of 166 units of officetels with exclusive areas ranging from 64 to 84㎡, in buildings from three basement floors to a maximum of 26 floors above ground. It is located within Dongtan Techno Valley, where Hanmi Pharmaceutical’s research center is situated, enabling convenient commuting. Samsung Electronics Nano City is also nearby. Additionally, it is located in the central area of Dongtan 2 New Town, providing easy access to convenience facilities such as the planned Lotte Department Store and E-Mart, as well as SRT Dongtan Station. The GTX-A line is also scheduled to open at SRT Dongtan Station, which will further improve transportation convenience.

Hyundai Construction plans to launch ‘Hillstate Sungui Station’ in August. The complex will be developed on a scale of 1,012 households, including 748 apartment units and 264 residential officetel units, ranging from four basement floors to a maximum of 47 floors above ground. Among them, the residential officetels will be located from the third basement floor to the 47th floor, with exclusive areas ranging from 39 to 59㎡, totaling 264 units. The ‘Hill’s Avenue Square Mall,’ a street commercial facility within the complex, will be located on the first and second floors above ground, consisting of 100 units. The complex is an ultra-station area located right in front of Sungui Station on the Suin-Bundang Line, allowing convenient access to Seoul and the metropolitan area. Additionally, within a 1 km radius, large marts such as Homeplus and E-Mart, as well as Inha University Hospital and other medical facilities, are located, providing convenient living.