Recently, the price of officetel pre-sales in Seoul has been rising sharply, prompting buyers to hurry and purchase before prices increase further.
According to Real Estate R114, as of the end of 2022, the average pre-sale price of officetels in Seoul was 80.8 million KRW per 3.3㎡ of exclusive area. This represents an increase of about 40 million KRW compared to 41.23 million KRW per 3.3㎡ two years ago, nearly doubling in just two years. After surpassing 60 million KRW for the first time in 2021, prices jumped to over 80 million KRW last year.
The real estate industry attributes the significant rise in Seoul officetel pre-sale prices to steadily increasing raw material costs since last year. In particular, due to the ongoing Russia-Ukraine war since last year, prices of essential construction materials such as cement, ready-mixed concrete, and rebar have continuously risen.
Additionally, given that most construction projects are financed through project financing, the recent rise in interest rates has increased financial costs, which also contributes to pushing up pre-sale prices.
Especially in Seoul, land price increases play a major role in driving up pre-sale prices. In prime locations such as Gangnam or areas near subway stations, land must be purchased at high prices, making it inevitable that pre-sale prices rise in line with land value increases.
Due to this upward trend in pre-sale prices, an awareness has spread among investors that "new officetels are cheapest today." During the ongoing price increase period, the price competitiveness of projects nearing pre-sale has relatively improved.
An industry insider said, "Recently, officetels introduced in Seoul have seen steep price increases due to rising raw material costs, interest rate hikes, and land price increases. With Seoul officetel pre-sale prices hitting record highs every year, investors are paying close attention to officetels launched in prime locations, believing that prices are currently the most affordable."
Meanwhile, ‘Billive Acent’ is scheduled for pre-sale in Yeonsinnae Station’s ultra-prime area in Eunpyeong-gu, Seoul, where the first GTX Line A will pass.
Billive Acent will be built in Bulgwang-dong, Eunpyeong-gu, Seoul, comprising 492 units ranging from 49㎡ to 84㎡ of exclusive area, in a building with 5 basement floors and 24 above-ground floors. Billive Acent applies a high floor height of 2.5m to all unit types, provides storage for each household on every floor (with building 101’s storage planned in the basement), features a 4-bay specialized layout and a dual-way innovative floor plan (for the 84㎡ type), and offers premium kitchen appliances and ceiling-type system air conditioners free of charge in all units. From basement level 1 to the 3rd floor, a large-scale commercial facility will also be developed.
The project also benefits from abundant development prospects. GTX Line A at Yeonsinnae Station is scheduled for partial opening in 2024, transforming the area into a triple station zone with access to Seoul Subway Lines 3 and 6. Once the entire GTX Line A is completed, it will take only 9 minutes to reach Samsung Station from Yeonsinnae, enabling rapid travel to Gangnam as if it were a neighboring district. Notably, there are only four GTX Line A stations within Seoul, and since residential products are scarce near Seoul Station and Samsung Station, Billive Acent’s ultra-prime location is expected to hold high rarity value.
Furthermore, large-scale development projects such as the Yeonsinnae District Unit Plan, which develops the Yeonsinnae Station area, and plans for a mixed-use complex exceeding 60 floors?comparable to COEX?on the Seoul Innovation Park site near Yeonsinnae Station are underway, adding to the area’s development potential.
Billive Acent is located near Rodeo Street and Yeonseo Market, and residents can conveniently access various lifestyle infrastructures such as NC Department Store Bulgwang Branch, Lotte Mall Eunpyeong Branch, E-Mart Eunpyeong Branch, Starfield Goyang, as well as Cheonggu Seongsim Hospital and Catholic University Eunpyeong St. Mary’s Hospital. In particular, a multiplex cinema is planned within Billive Acent’s commercial facilities, making it convenient to enjoy cultural activities.
Meanwhile, Billive Acent’s model house will be uniquely designed in collaboration with the digital design company District, featuring an immersive media art gallery.
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