Residential officetel sold out streak... "Perfect alternative to apartments"

Recently, the popularity of residential officetels in the real estate market has been steadily increasing. As real estate regulations have primarily targeted apartments, demand has relatively shifted towards residential officetels, which face fewer restrictions.

The industry attributes this rising popularity of officetels to their more lenient real estate regulations compared to apartments. For example, under the June 17 measures, if a buyer who has taken out a jeonse (long-term deposit lease) loan purchases an apartment exceeding 300 million KRW within regulated areas (speculative zones, overheated speculation districts), the jeonse loan is recalled.

Additionally, when purchasing a home with a mortgage loan in regulated areas (speculative zones, overheated speculation districts, adjustment target areas), the buyer must register their residence within six months. However, officetels are exempt from this regulation.

Owning a pre-sale right for an officetel does not count as home ownership when applying for apartment subscriptions, thus maintaining eligibility. Furthermore, in overheated speculation districts, the loan-to-value ratio (LTV) for apartments is reduced to 40% for properties under 900 million KRW and 20% for the portion exceeding 900 million KRW. In contrast, officetels allow loans up to 70% of the property price.

Given these factors, demand for residential officetels is high. Currently, ‘Loft 153,’ a residential officetel, is being sold in the Suwon area of Gyeonggi Province. It consists of one building from four basement floors to ten above-ground floors. Floors 2 through 10 house 153 residential officetel units ranging from 44 to 82 square meters, and the first floor contains 20 neighborhood living facilities.

The Shinbundang Line Hommaesil Station (planned) is scheduled to begin construction in 2023, and Loft 153 is within a two-minute walk from the station. Once Hommaesil Station opens, it will take about 40 minutes to reach Gangnam Station. Additionally, the GTX-C line at Suwon Station, located within a 4 km radius, is planned to open by 2026. When the GTX-C line opens, travel from Suwon Station to Seoul Samsung Station will take approximately 20 to 30 minutes.

Residents can use express buses to Seoul Sadang Station, Gyodae Station, and Gyeonggi Geumjeong Station, and there are many regular bus routes, making regional travel convenient. Moreover, access to the Gwangmyeong-Siheung-Bongdam Expressway via Geumgok IC and Seosuwon IC is easy, allowing travel to Gwangmyeong and Siheung within 15 minutes. With further extensions, it will also be possible to reach the central Magok district in western Seoul by car within 30 minutes.

Hotel-style housekeeping and bedding replacement services will also be provided. Notably, Loft 153 is expected to be completed around February 2023, before the July 2023 implementation of the 40% DSR (Debt Service Ratio) regulation, allowing residents to move in before stricter loan regulations take effect.

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