Monthly Rent Prices for Officetels: 0.31%↑ in Seoul Metropolitan Area, 0.14%↓ in Provinces
Decline in Sale Prices Narrows from -0.56% to -0.47%
Monthly rent for officetels in the Seoul area showed a significant upward trend.
An officetel located in Noryangjin, Dongjak-gu, Seoul, where civil service exam academies and entrance exam academies are concentrated. Photo by Jinhyung Kang aymsdream@
According to the officetel price trend survey released by the Korea Real Estate Board on the 15th, the nationwide monthly rent for officetels rose by 0.22% in the first quarter of this year. This increase was larger than that of the fourth quarter of last year (0.14%).
The monthly rent price for officetels in the metropolitan area also jumped 0.31% in the first quarter of this year. The rate of increase was steeper than in the fourth quarter of last year (0.14%). The significant rise in Seoul (0.03% -> 0.40%) had a major impact. In Seoul, rental demand increased mainly around subway stations and school districts near Gwanghwamun and Gangnam officetels, leading to a rise in monthly rents.
In Incheon (0.01% → -0.18%), the increase in apartment move-ins centered around new towns caused a shift to a decline. In Gyeonggi (0.42% → 0.40%), the rise slowed slightly due to the burden from a short-term surge in semi-rent (banjeonse).
On the other hand, the provinces fell by 0.14%, with the decline widening compared to the fourth quarter of last year (-0.04%). Sejong (0.09% → -0.14%) shifted from an increase to a decrease, and Busan (-0.12% → -0.27%) and Daegu (-0.06% → -0.55%) saw their declines deepen, resulting in an overall expansion of the drop in the provinces compared to the previous quarter.
Meanwhile, the jeonse (long-term deposit lease) price decreased by 0.27% in the first quarter of this year, narrowing the decline compared to the previous quarter (-0.38%). The only exception was Daegu (-0.85% → -1.00%), where the decline widened.
Sale prices also continued to fall, dropping 0.47% in the first quarter of this year, but the decline was smaller than in the previous quarter (-0.56%). In Seoul (-0.38% → -0.26%) and Incheon (-0.79% → -0.45%), expectations for price increases were formed due to positive factors such as the metropolitan express railway (GTX) and subway line extensions. However, in Gyeonggi (-0.42% → -0.58%), the decline deepened due to an accumulation of urgent sales where returning jeonse deposits was difficult and a surplus of pre-sale rights.
The average yield for officetels nationwide was 5.30% as of March. By region, Daejeon (7.63%) had the highest yield, while Seoul (4.81%) had the lowest. The jeonse price ratio, which is the ratio of jeonse price to sale price, was recorded at 84.53% nationwide as of March. Sejong (86.37%) had the highest ratio, whereas Busan (81.78%) had the lowest.
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