Small officetels under 40㎡ exclusive area are popular
In Gyeonggi, preference for apartels over 60㎡ exclusive area
[Asia Economy Reporter Kim Min-young] The number of officetel sales in Seoul and Gyeonggi this year has increased by nearly 50% compared to last year. This is believed to be because demand has concentrated on officetels, which have lower price and tax burdens than recently soaring apartments.
On the 27th, Dabang Station3 analyzed the number of officetel sales in Seoul and Gyeonggi based on actual transaction price data from the Ministry of Land, Infrastructure and Transport. From the beginning of this year to September 24, the total number of officetel sales in Seoul and Gyeonggi was 28,273, an increase of 48% compared to the same period last year.
Seoul recorded 13,918 cases, and Gyeonggi 14,355 cases, increasing by 34.2% and 64.4% respectively from the previous year. During the same period, apartment sales in Seoul decreased by 40.5%, and in Gyeonggi by 29%.
In both Seoul and Gyeonggi, sales concentrated on small officetels under 40㎡ exclusive area. This year, officetel sales under 40㎡ exclusive area in Seoul were counted at 11,096 cases, accounting for 79.7% of the total. In Gyeonggi, officetel sales under 40㎡ exclusive area were 7,877 cases, making up 54.9% of the total.
The increase in officetel sales is believed to be influenced by the rise in single-person households and relatively low acquisition taxes. Last year, the proportion of single-person households reached a record high of 31.7%. The acquisition tax for officetels is 4.6%, whereas homeowners in regulated areas must pay an 8% acquisition tax if they purchase an additional house.
In the case of Gyeonggi Province, the proportion of officetel sales over 60㎡ exclusive area reached 25.9% (3,714 cases) this year. Recently, many residential officetels called apartels have been built in areas such as Namyangju Byeollae, Wirye, Gwanggyo, and Goyang Samsong, and they are gaining popularity as alternative residential products because their prices are relatively lower than apartments. On the other hand, officetel sales over 60㎡ exclusive area in Seoul were 1,057 cases, accounting for only 7.6% of the total.
As demand increased, officetel prices also rose. According to the Korea Real Estate Board, in the third quarter, officetel sale prices in Seoul rose by 0.74%, and in Gyeonggi by 1.21%.
A Dabang official said, "Officetels with good transportation and close to business districts tend to have steady demand for residence and investment," adding, "In addition, due to the rapid rise in apartment prices, demand for residential officetels with relatively lower market prices seems to have recently increased."
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