Seoul High-End Officetels Over 700 Million Won Soar in Popularity... Transaction Volume Up 146% in 5 Years

[Asia Economy Reporter Ryu Tae-min] The transaction volume of high-priced officetels exceeding 700 million won in Seoul has more than doubled over the past five years.

According to an analysis by real estate research firm Realtoday of data from the Ministry of Land, Infrastructure and Transport's actual transaction price disclosure system on the 24th, a total of 615 officetels priced over 700 million won were traded in Seoul last year. This represents a 60.1% increase compared to the transaction volume of 384 units two years ago in 2019, and a 146% rise compared to 250 units in 2017.

The increase in transaction volume is analyzed to be due to the market demand shifting towards residential officetels as housing regulations have been strengthened and tax burdens increased following consecutive high-intensity real estate policies. In particular, residential officetels with various advantages such as proximity to subway stations (yeoksegwon), good school districts (haksegwon), and parks (gongsegwon) are highly convenient for daily life, making them popular among actual users and investors, according to Realtoday.

In fact, these high-end officetels showed high competition rates in subscription applications. In August last year, 'Godeok I-Park Dearban' supplied in Gangdong-gu, Seoul recorded an average competition rate of 31.5 to 1. In June of the same year, 'Limitio 148' supplied by Bando Construction in Yeongdeungpo-dong, Yeongdeungpo-gu, Seoul also recorded an average competition rate of 11 to 1.

This year, several high-end officetel complexes are also launching sales. Dongbu Construction plans to sell the 'Centreville 335' officetel next month in the Sillim-dong area of Gwanak-gu, Seoul. The complex will be built with 335 units ranging from 51 to 62 square meters in exclusive area, spanning from 7 basement floors to 20 above-ground floors.

DL E&C is currently selling 'e-Pyeonhansesang City Pungmu Station' in the Pungmu-dong area of Gimpo-si, Gyeonggi-do. It consists of one building with officetels ranging from 35 to 43 square meters in exclusive area, 420 units in total, and commercial facilities within the complex, spanning from 6 basement floors to 14 above-ground floors.

Additionally, the terrace officetel 'Apex Cheongna' will be supplied this month in Cheongna International City. Lotte Construction is supplying the high-end officetel 'Le Nid' in the Seocho-dong area of Seocho-gu, Seoul.