Polarization in Officetels... Clear Preference for Stationside Locations

Price Gap and Subscription Success Vary Depending on Proximity to Station Areas

[Asia Economy Reporter Kim Min-young] This year, officetels located near subway stations are showing strong performance in the metropolitan area housing market. Amid a clear trend of interest rate hikes, there is a growing preference for subway station-area officetels, which are expected to have stable value appreciation.

According to KB Real Estate Market Data, as of July, the Woorim Rodeo Suite officetel in Ilsandong-gu, Goyang-si, Gyeonggi Province, with an exclusive area of 59㎡, is priced at a deposit of 5 million KRW and monthly rent ranging from 550,000 to 600,000 KRW. This complex is located near Jeongbalsan Station on Line 3, a prime subway station area. In contrast, the Wooin Acriumville 1 officetel, also 59㎡ but about 800 meters away from Jeongbalsan Station, has a market price of a 5 million KRW deposit and monthly rent between 450,000 and 490,000 KRW, showing a monthly rent difference of over 100,000 KRW between the two complexes.

In March this year, the Sanbon Daewoo Dio Plus officetel in Sanbon-dong, Gunpo-si, Gyeonggi Province, with an exclusive area of 66㎡, was traded at 120 million KRW (12th floor). This is an increase of 10 million KRW compared to the price a year ago (110 million KRW). This officetel is located right in front of Sanbon Station on Line 4.

On the other hand, the Sanbon Station Centro 601 officetel, 61㎡ and located about a 10-minute walk from Sanbon Station, was transacted at 124.5 million KRW (6th floor) in July this year. This shows a slight decrease compared to the 140 million KRW (7th floor) transaction a year ago.

Despite a sluggish subscription market in the first half of the year, subway station-area officetels continued to attract strong interest. According to the Korea Real Estate Agency’s subscription website, the ‘Byeongjeom Station Seohae Sky Palace Phase 1’ officetel, supplied in front of Byeongjeom Station on Line 1 in April this year, received 11,195 subscription applications for 90 units, recording an average competition rate of 124 to 1.

In the same month, the ‘Geomdan Station Kumkang Pentarium The Siglo Phase 2’ officetel, supplied near the planned Sinseol Station on Incheon Subway Line 1, attracted 3,893 subscription applications for 64 units, showing an average competition rate of 60.8 to 1.

This month, complexes with subway station-area conditions are also scheduled to be offered. SK Ecoplant plans to supply the residential officetel ‘Yeongjong SK VIEW’ in Yeongjong International City, Incheon. It is notable that the officetel is located within a 3-minute walk from Unseo Station on the Airport Railroad, a prime subway station area. The complex consists of 432 units ranging from 39 to 49㎡, spanning from 5 basement floors to 10 above-ground floors.

Hanyang plans to supply the ‘Gwacheon Cheongsa Station Hanyang Sujain’ officetel in Gwacheon-si, Gyeonggi Province, in July. It is close to Government Complex Gwacheon Station on Line 4, allowing direct travel to Seoul Station without transfers. The Government Complex Gwacheon Station is scheduled to be served by the GTX-C line and the Gwacheon Wirye Line, which pass through major Gangnam areas. The officetel will have 288 units with exclusive areas ranging from 23 to 55㎡.