Seoul Small and Medium Apartment Prices Rise 18% in One Year... Alternative is 'Residential Officetel'

As Seoul housing prices continue to soar, demand is flocking to residential officetels. Compared to apartments, they are relatively less expensive and have less stringent subscription regulations. Especially after the implementation of the three lease laws, as rental properties have become scarce, demand for residential officetel sales has increased even more.

According to data from Real Estate 114, as of March, the average price per household for apartments in Seoul with an exclusive area of 60~85㎡ is 1,191.62 million KRW. This is a 16.59% increase compared to one year ago (March 2020). Small apartments show a similar trend. The average price per household for 60㎡ exclusive area is 799.34 million KRW, up 18.2% from a year ago.

As prices for move-in ready apartments skyrocket, the concentration of demand on newly launched complexes in Seoul is also intensifying. Due to factors such as the price ceiling system, some complexes are priced relatively lower than market prices. As a result, a large number of buyers are rushing in, causing subscription winning scores to soar to the sky.

According to the Korea Real Estate Board, the ‘Jayang Haneulchae Ver’ in Jayang-dong, Gwangjin-gu, Seoul, which was offered for sale in March, recorded a 367.37 to 1 ratio for first-priority subscriptions. The average winning scores were 68.23 points for the 46㎡ A type and 70 points for the 46㎡ B type. The high competition rate was matched by equally high winning scores.

As apartment prices and winning score cutoffs in Seoul rise to unprecedented levels, demand is pouring into residential officetels offered in Seoul. Since subscription savings accounts are not required, buyers with low scores can easily access them, and loans are relatively freer compared to apartments. Also, officetels are not classified as housing when applying for apartment subscriptions, allowing buyers to maintain first-priority subscription eligibility. Additionally, they have the advantage of being relatively less expensive than apartments in the same area.

In fact, recently launched residential officetels in Seoul have been very popular. In February, Hyundai Construction’s ‘Hillstate Cheonggye Central’ in Hwanghak-dong, Jung-gu, Seoul, recorded an average of 12 to 1 and sold out quickly. This officetel, designed as a residential product with layouts and designs comparable to apartments, was very popular among 2-3 person households.

In December last year, Hyundai Engineering’s ‘Hillstate Sindorim Station Central’ in Sindorim-dong, Guro-gu, Seoul, also recorded an average of 6.54 to 1 and sold out early. Its convenient location for commuting to business districts and status as an alternative residential product to apartments attracted significant interest from the 30s and 40s age group.

A real estate expert said, “As Seoul housing prices continue to rise and it becomes harder to find rental properties, the enthusiasm of young people to own their own homes is heating up, increasing the popularity of residential officetels, which are relatively easy to access. Officetels are located in urban areas with more convenient living infrastructure than apartments and offer easy access to business districts, so their preference among young generations is expected to remain high.”

Interest is high in branded residential officetels scheduled for sale in Seoul this month. Hyundai Construction is offering the residential officetel ‘Hillstate Jangan Central’ in Dongdaemun-gu, Seoul. This residential officetel consists of 369 units ranging from 38 to 78㎡ across 6 basement floors to 20 above-ground floors.

Hillstate Jangan Central has a wide transportation network using the Internal Circular Road and Dongbu Expressway, making it convenient for both private car and public transportation users. Additionally, Janganpyeong Station on Subway Line 5 is within about 1 km, allowing direct access to Gwanghwamun and Yeouido. Being located in a major urban area, the infrastructure is excellent. Within walking distance are the complex shopping mall ‘Art Malling Jangan Branch’ and ‘Lotte Cinema Jangan Branch,’ as well as convenient access to ‘Lotte Department Store Cheongnyangni Branch,’ ‘Samyook Seoul Hospital,’ and ‘Homeplus Dongdaemun Branch.’

A sports park stretches along Jungnangcheon, just a 5-minute walk from the complex, offering outdoor swimming pools, foot volleyball courts, basketball courts, and other sports facilities. Additionally, green spaces such as Jangpyeong Neighborhood Park, Jangan Neighborhood Park, Dapsimni Park, and Baebongsan Dullegil provide abundant greenery for comfortable leisure activities within the city.

A sales official said, “The residential officetel is designed to be suitable for newlyweds or families of three, and its location in the city center allows for convenient living, so we are receiving many inquiries ahead of the official sale. Since subscription savings accounts are not required, not only young people with low scores but also homeowners are showing interest.”

This content was produced with the assistance of AI translation services.