Recently, not only has the apartment jeonse (long-term lease) crisis become a reality, but the threshold for applying to newly launched apartments remains high, while the residential officetel market, which is relatively free from various regulations, is gaining momentum.
In fact, as the two-year mark since the implementation of the Three Lease Laws approaches this August, jeonse prices have been soaring recently. According to KB Real Estate, as of June 6, nationwide apartment jeonse prices rose by 0.03% compared to the previous week, with Seoul increasing by 0.04%. In Gyeonggi Province, prices rose by 0.03% during the same period, marking 13 consecutive weeks of increases since March 14.
Along with the rise in jeonse prices, the number of people exercising their right to renew contracts has increased, leading to a shortage of jeonse supply. The Jeonse Supply-Demand Index, an indicator of jeonse supply levels, recorded 130.1 nationwide, 128.3 in Seoul, and 125.5 in the metropolitan area as of June 6. The Jeonse Supply-Demand Index ranges from 0 to 200, with values above 100 indicating a supply shortage.
Competition for subscription remains fierce. According to data from Real Estate R114 (as of June 10), this year, 236,110 people applied for 23,611 apartment units in the metropolitan area, resulting in an average competition rate of 13.7 to 1. In particular, the ‘Hillstate Geomdan Well County’ complex supplied in Incheon in April recorded a highest score of 76 points for the 125㎡ exclusive area type under the point-based system.
Due to such high subscription thresholds and the jeonse crisis, more consumers are turning their attention to residential officetels. Recently supplied residential officetels offer spacious areas comparable to apartments and resemble small to medium-sized apartments. Moreover, since no subscription savings account is required and allocation is done by lottery, they are especially popular among younger generations who are disadvantaged under the point-based system.
A real estate official stated, “The side effects of the Three Lease Laws have caused a dual pricing system for jeonse and an increase in monthly rent proportions, leading to a jeonse crisis. The entry barrier for apartment subscriptions is extremely high, making it difficult,” adding, “Residential officetels offer apartment-level living conditions, are free from various regulations, and have less subscription burden, thus gaining popularity.”
Amid this, the residential officetel ‘Bisan World Meridian Diart,’ which is relatively free from various regulations and features apartment-comparable spatial design, is attracting attention as it goes on supply.
Bisan World Meridian Diart is being constructed in Bisan-dong, Dongan-gu, Anyang-si, Gyeonggi-do. It consists of 90 units ranging from 75 to 83㎡ across four basement floors to 20 above-ground floors. It mainly offers small to medium-sized units preferred by consumers, with all types designed as 3-room layouts, and provides full-furnished systems and pantries to enhance resident satisfaction.
Bisan World Meridian Diart applies product designs that allow residents to enjoy apartment-level living conditions. It features a full-furnished system that provides built-in full options free of charge in all units, including refrigerators, washing machines, dryers, microwave ovens, and ceiling-type air conditioners. Additionally, ample storage spaces such as shoe cabinets, pantries, and built-in wardrobes create a spacious feel comparable to apartments, while high-end kitchen furniture and world-renowned bath brand products enable a premium living experience.
This complex’s strength lies in its low entry barriers compared to apartments, being free from subscription and various regulations. No subscription savings account is required, there is no obligation to submit a financial plan, and interest-free installment payments are offered, reducing financial burdens. Notably, there is no residency obligation, and since it is an officetel with fewer than 100 units, there are no resale restrictions.
The location is also excellent. It boasts excellent transportation accessibility with Line 1 Anyang Station and Myeonghak Station, Line 4 Beomgye Station, and Pyeongchon IC on the Outer Ring Road. Various lifestyle conveniences such as E-Mart, Anyang Central Market, Lotte Department Store, and Lotte Cinema are nearby. It offers a superior educational environment with Anyang Central Elementary School within walking distance and the nearby Pyeongchon academy district, while natural surroundings like Gwanaksan, Bibongsan, Anyangcheon, and Hakuicheon are also close by.
The subscription schedule opens on the 14th, with winners announced on the 15th. Contracts will be signed at the sales office from 10 a.m. to 5 p.m. on the 16th.
Meanwhile, the sales office for Bisan World Meridian Diart is currently operating.
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