Office-tel Prices Also Soar... Both Sale and Jeonse Double Sharply

Korea Real Estate Board Q3 Officetel Trend Survey
Seoul Metropolitan Area Officetel Prices Up 1.14%...More Than Double Previous Quarter Increase

[Asia Economy Reporter Jo Gang-wook] The nationwide officetel sale prices increased more sharply in the third quarter of this year. In particular, the Seoul metropolitan area saw a 1.14% rise, more than doubling the increase from the previous quarter (0.43%).

According to the Korea Real Estate Agency's survey on officetel price trends for the third quarter released on the 15th, officetel prices in the Seoul metropolitan area rose 1.14% compared to the second quarter, more than doubling the previous quarter's increase of 0.43%.

In Seoul, prices rose 0.74% in the third quarter, expanding the increase from 0.07% in the second quarter.

Notably, in Incheon, officetel prices surged 2.31% in the third quarter, centered around Seo-gu and Bupyeong-gu. Gyeonggi Province also saw a 1.21% increase compared to the previous quarter, mainly in Suwon Yeongtong, Yongin Giheung, and areas with expected transportation improvements such as Bucheon and Osan.

Due to the strong performance in the Seoul metropolitan area, the nationwide officetel prices in the third quarter rose 0.99% compared to 0.37% in the previous quarter, more than doubling the rate of increase.

Officetel jeonse (long-term lease) prices also followed the same trend. Nationwide officetel jeonse prices rose 0.94% in the third quarter, more than doubling the previous quarter's increase of 0.42%.

Jeonse prices in Seoul increased by 0.74%, Incheon by 1.90%, and Gyeonggi by 1.21%, all expanding their increases compared to the previous quarter. Accordingly, jeonse prices in the Seoul metropolitan area rose from 0.45% in the second quarter to 1.09% in the third quarter.

Monthly rent prices also increased. Nationwide officetel monthly rents rose 0.54% in the third quarter, surpassing the 0.19% increase in the second quarter.

A Korea Real Estate Agency official analyzed, "The increase in interest following the announcement of officetel regulation relaxation and the prolonged rise in housing prices have expanded the price increase mainly for medium to large officetels that can serve as substitutes."