Due to a shortage of apartment supply in Seoul, officetels and small housing units (urban lifestyle housing) are gaining popularity as alternatives to apartments.
Last year, the supply volume in Seoul was 3,275 units, which is about half of the 6,334 units supplied in 2010, the year with the lowest supply so far. As the supply volume decreased, the competition rate for first-priority apartment subscriptions in Seoul rose to 162.9 to 1, about twice the previous year's rate of 89.8 to 1, and the average score required to win also increased to the high 60s.
Accordingly, from young adults with relatively low scores to newlyweds and the 30-40 age group seeking to own a home, many are turning their attention to residential products that can replace apartments. Officetels and small housing units (urban lifestyle housing) can be applied for by anyone aged 19 or older without a subscription savings account, and they use a lottery system rather than a point-based system, making the entry barrier lower compared to apartments. Additionally, there are no restrictions on re-winning or mandatory residence requirements.
According to the real estate industry on the 22nd, recently supplied apartment alternative products in major locations in Seoul have succeeded in attracting attention with subscription competition rates in the tens or hundreds to one. The ‘Hillstate Cheongnyangni Metroble’, which received subscription applications this month, attracted a total of 12,174 applicants for 96 officetel units, recording an average competition rate of 126.8 to 1. The ‘Singil AK Prugio’ small housing units (urban lifestyle housing), supplied last November, also closed subscriptions with an average competition rate of 44.6 to 1, with 12,766 applications for 286 units (excluding rentals).
Meanwhile, Xi S&D plans to supply the residential complex ‘Sinseoldong Station Xi Lerne’, which can replace apartments, in Sinseoldong, Dongdaemun-gu, Seoul, in April.
Sinseoldong Station Xi Lerne will be located in Sinseoldong, Dongdaemun-gu, and will consist of a total of 238 units, including 95 officetel units with exclusive areas of 35 to 55㎡ and 143 small housing units (urban lifestyle housing) with exclusive areas of 42 to 45㎡, in three buildings with four basement floors and up to 20 floors above ground. The complex will feature a 100% self-parking lot providing one parking space per household, and will be designed with customized layouts such as duplexes, terraces, and various floor plans to satisfy residents' lifestyles.
Sinseoldong Station Xi Lerne is an ultra-station area complex located right in front of Exit 9 of Sinseoldong Station, allowing access to Line 1, Line 2, and the Ui-Sinseol Line. Using the subway, it takes about 10 minutes to reach Jongno and the City Hall area, and about 30 minutes to reach Gangnam. The road transportation network is also well established, including Wangsan-ro, Gosan-ro, Cheonho-daero, and the Inner Ring Road.
There is also abundant living infrastructure. It is convenient to use various commercial facilities such as Seoul Folk Flea Market, Dongmyo Flea Market, Yakryeong Market, and E-Mart (Cheonggyecheon branch), and nearby parks include Sungin Neighborhood Park, Seoul Dongmyo Park, and Usangak Children's Park. In particular, Cheonggyecheon, a famous spot in Seoul, is nearby, offering the advantage of enjoying light walks and exercise. Large general hospitals such as Seoul National University Hospital, Korea University Hospital, and Hanyang University Hospital are also close.
Additionally, the Dongdaemun commercial district has about 100,000 workers, and there is expected to be demand from office workers commuting to central business districts (CBD) such as Gwanghwamun, Jongno, and Euljiro.
Meanwhile, the area near Sinseoldong Station, where the complex will be located, is evaluated as a region with high future value due to various planned development projects. Large-scale residential towns are under development in Dongdaemun-gu’s Yongdu-dong and Jeonnong-dong areas, including the Cheongnyangni Redevelopment Promotion District and Jeonnong-Dapsimni Redevelopment Promotion District, covering about 110,000 pyeong. Nearby Cheongnyangni Station is planned to have new lines including the GTX B and C lines, the Suseo-origin SRT extension to Uijeongbu, the Myeonmok Line, and the Gangbuk Transversal Line.
Sinseoldong Station Xi Lerne is scheduled to open a model house in April and begin the sales schedule.
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