- Widespread Recognition of Housing Price Peaks, Housing Market Slightly Stalls Amid High Interest Rate Trend
- High and Stable Rental Income Achievable... Increasing Proportion of Monthly Rent and Rising Monthly Rent Prices
As the popularity of apartments in the real estate market has somewhat waned, investor interest in officetels, one of the representative income-generating real estate types, is expected to rise.
This is because the perception that housing prices have peaked has become widespread, and with interest rates also rising, the housing market is losing momentum. Additionally, it has become impossible to realize high capital gains through apartments as in the past, reducing their investment appeal.
However, residential officetels are different. While residential officetels can be purchased for actual living purposes, they are also used as investment tools to generate rental income. Officetels can create high and stable returns not only through capital gains but also through rentals such as monthly rent or jeonse (long-term deposit lease).
Moreover, for multi-homeowners, purchasing an officetel offers advantages such as reduced acquisition tax compared to houses and the possibility of registering as a rental business operator. Even multi-homeowners who purchase an officetel and register as rental business operators can reduce acquisition tax by 85%. In addition, rental business operators can receive certain benefits on property tax, comprehensive real estate tax, and capital gains tax.
The proportion of monthly rent is increasing, and with monthly rent prices also on the rise, the popularity of officetels has further increased. This is because the interest rates on jeonse loans have sharply risen, causing jeonse demand to shift toward monthly rent.
According to the Ministry of Land, Infrastructure and Transport, the proportion of monthly rent transactions among nationwide housing rental transactions in the first half of this year reached 51.6%. Also, the nationwide monthly rent price index has been steadily rising since August 2020 up to the present (as of August, according to the Korea Real Estate Board).
As residential officetels are once again gaining attention as investment products, ‘e-Pyeonhansesang City Hangdong Marina,’ currently being sold in Hangdong, Jung-gu, Incheon, is attracting investors’ interest.
‘e-Pyeonhansesang City Hangdong Marina’ is a residential officetel developed by DL E&C (DL E&C) in the Hangdong area of Jung-gu, Incheon. It will be constructed with 4 buildings, from 3 basement floors to 39 above-ground floors, with a total of 592 units, each with a net area of 82㎡. Since it is built up to the 39th floor, some units will offer sea views.
This complex will be located within the port redevelopment project area of Incheon Inner Port, allowing expectations for increased future value. Currently, the Incheon Inner Port area is undergoing a master plan for redevelopment of Piers 1 to 8 into five specialized zones: Marine Culture Zone, Complex Business Zone, Open Residential Zone, Innovation Industry Zone, and Tourism Leisure Zone. The redevelopment project is actively progressing, starting with Piers 1 and 8.
Incheon City has secured ownership of the Inner Port area and plans to designate it as a Free Economic Zone, promoting the ‘Jemulpo Renaissance’ project to create a ‘Harbor City’ centered on history, culture, marine tourism, leisure, and culture.
‘e-Pyeonhansesang City Hangdong Marina’ also boasts excellent location advantages. It is within commuting distance to Sinseon Elementary School (including attached kindergarten), Sinheung Middle School, and Sinheung Girls’ Middle School. Inha University Hospital, Incheon Jungdong Post Office, and E-Mart (Dongincheon branch) are also easily accessible. Additionally, it takes about 10 minutes by car to reach Songdo International City, providing access to abundant lifestyle amenities.
Rental demand is solid as well. The complex is surrounded by institutions such as Incheon Main Customs, Incheon Regional Public Procurement Service, Incheon Regional Maritime Affairs and Fisheries Office, and Jung-gu Office of Incheon. Furthermore, workers employed in logistics complexes and various industries near Incheon Port are expected to seek this officetel. Commuting to Incheon General Industrial Complex and Juan National Industrial Complex, including companies like CJ CheilJedang, Hyundai Doosan Infracore, Hyundai Steel, and Dongkuk Steel, is also anticipated.
A bus stop with 9 routes is adjacent to the complex, and residents can also use Sungui Station on the Suin-Bundang Line, as well as Incheon Station and Dongincheon Station on Seoul Subway Line 1. In the future, the Bupyeong Coastal Pier tram line is planned, which will further improve transportation conditions.
Inside the complex, an open dining kitchen design combining the living room, kitchen, and dining area ensures efficient flow (except for some units). Outside the complex, facilities such as a weather station indicating fine dust levels, fine dust reduction plantings, mist spraying equipment, and air curtains at building entrances will be installed, promising a comfortable living environment.
‘e-Pyeonhansesang City Hangdong Marina’ is not subject to the DSR (Debt Service Ratio) phase 3 regulations and offers benefits such as a fixed first deposit of 10 million KRW. Therefore, it is expected to be a complex where one can aim not only to own a home but also to invest in Incheon, which is poised for significant growth.
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