Real Estate Development Association 'Characteristics of Officetel Resident Households and Owners'
Purchased Mainly by Those Over 50, Rented to 2030 Generation... 83% in Jeonse and Monthly Rent
Among owners of officetels in Seoul, 6 out of 10 are aged 50 or older, earning an average annual rental income of 5.6%. Meanwhile, 69% of officetel residents are young adults in their 20s and 30s, mostly occupying the units through jeonse (lump-sum deposit lease) or monthly rent arrangements.
The Korea Real Estate Development Association announced on the 15th that it analyzed the "Characteristics of Officetel Resident Households and Owners" by reviewing the registered copies of 1,500 officetel units in Seoul based on building registers as of December last year. The association emphasized that officetels serve as a housing ladder for young people and single- or two-person households in urban areas, and that retirees view them as rental products aimed at stable monthly rental income.
The analysis showed that out of 1,255,127 officetel units nationwide, 367,913 households, accounting for 29.3%, were located in Seoul. From these, 1,500 units were sampled considering autonomous districts and exclusive area, and the resident household characteristics were analyzed, revealing that 69.1% were young adults in their 20s and 30s. Specifically, those in their 20s accounted for 229,411 households (36.6%) and those in their 30s for 203,718 households (32.5%).
Regarding occupancy types, 82.9% were under jeonse or monthly rent. Monthly rent accounted for 54.6%, jeonse 28.3%, and owner-occupied 14.4%. Single- and two-person households mainly lived in officetels with an exclusive area of 50㎡ or less, typically under a "deposit + monthly rent" arrangement.
More than half of officetel owners were aged 50 or older. By age group, 50s made up 26.3%, 60s 20.8%, and 70s 12.9%. The average ownership period was found to be 8.8 years.
The proportion of officetel owners who actually reside in their units was only 2.5%, indicating that most units are rented out. The average annual capital return rate (based on the current market price compared to the purchase price or sale price at the time of ownership transfer) was estimated at 2.5%. The average annual income return rate through monthly rent was 5.6%.
Based on these statistics, the association confirmed that officetels are investment assets rather than speculative assets and emphasized the need to rationalize tax policies that include officetels in the housing count. Officetels are products rented out by retirees to secure retirement income. The association also stated that officetel supply should be expanded to ensure housing stability for single- and two-person households.
Previously, the government announced a tax relief policy under the 1·10 measures, excluding newly built officetels purchased or registered for rental within the next two years from the housing count. The policy targets residential officetels with an exclusive area of 60㎡ or less priced under 600 million KRW in the metropolitan area and 300 million KRW in other regions. However, there have been fairness concerns as officetels completed or purchased by December 31 last year do not qualify for the housing count exclusion.
Kim Seung-bae, president of the Korea Real Estate Development Association, said, "The 1·10 measures are meaningful in recognizing the positive role of officetels in the housing market." He added, "To expand new supply, the scope of tax relief limited to 'completion within two years' should be broadened, and the price criteria should be adjusted realistically considering construction cost increases." He further explained, "For fairness and to activate transactions, it is desirable to remove the purchase timing restriction on existing officetels."
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