Recently, apartment prices have been on the rise, but the officetel market, considered a substitute for apartments, is still facing a cold spell. Despite lowering the down payment ratio for officetel pre-sale contracts, offering full interest-free intermediate payments, and conducting partnership marketing, it remains difficult to clear the inventory.
According to KB Real Estate on the 20th, the price of officetels in Seoul increased by 0.03% last month compared to the previous month, marking a rise after five months. Additionally, with growing preference for monthly rent, the officetel yield rate in Seoul and the metropolitan area exceeded 5% for the first time since 2018, reaching 5.01%.
Transaction volume also increased. According to the Korea Real Estate Board, the nationwide officetel transaction volume in the first quarter of this year was 6,990 cases, up 3.3% (226 cases) from 6,764 cases in the fourth quarter of last year. Due to the impact of jeonse fraud, demand for officetel monthly rent has increased, and given the nature of officetels being approached more as investments than for actual residence, rental prices have risen accordingly, boosting yields.
However, despite positive indicators, the market is struggling to resolve the remaining officetel inventory. The 'Gangdong Station SK Leaders View' officetel, developed on the site of the former KT Gangdong branch in Gil-dong, Gangdong-gu, Seoul, has been supplied since February last year under conditions such as full interest-free intermediate payments, unlimited resale, and a 5% down payment (first payment fixed at 10 million KRW). Among these, the down payment is effectively waived as it is returned to customers as a congratulatory gift. Additionally, the balance payment is discounted by 5%. Gangdong Station SK Leaders View is an apartment-style officetel consisting of three buildings from basement level 6 to ground level 20, with a total of 378 units ranging from 84 to 99 square meters. Approximately 15,000 square meters of commercial facilities are also being constructed.
Experts analyze that it is difficult to say that warmth is spreading throughout the officetel market due to factors such as lower liquidity compared to apartments and vulnerability to interest rates. Ham Young-jin, head of the Real Estate Research Lab at Woori Bank, said, "While benefits such as interest-free intermediate payments amid high interest rates are positive, there are rapid apartment sales and some decent pre-sale complexes, so people seem to be approaching officetels cautiously." He added, "If apartment prices continue to rise, officetels could be highlighted again as substitutes, but the real estate market is not at that level yet."
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