"Second Smart Home Possible... Tax-Free 'Officetel Under 600 Million Won Near Subway Stations' Draws Attention"

Exclusion from Property Count for First-Time Acquisition of Officetels
Under 60 sqm and 600 Million Won Until Next Year

New Launches Target One- and Two-Person Households
in Yeongjong, Dongtan, and Gwacheon

With the government implementing tough real estate tax reforms targeting high-priced homes, small officetels are gaining attention as a niche product. Analysts say that low-priced, small officetels acquired by the end of next year can serve as an alternative housing option for one- and two-person households, since they are excluded from the housing count when calculating property holding and transaction taxes.

The tax reform plan announced by the government on August 3 aims to significantly increase the comprehensive real estate tax and capital gains tax for owners of ultra-high-priced homes and multiple properties. The key measure is to shift the comprehensive real estate tax standard from the number of homes owned to the value of those homes, so tax liabilities will rise even for single-home owners if their property is expensive. Additionally, the government has decided to convert the long-term holding deduction for capital gains tax into a residency-based deduction, removing tax benefits for non-resident single-home owners starting in 2028.

Perspective rendering of the residential officetel 'Yeongjong SK View' presented by SK Ecoplant in Yeongjong International City, Incheon. Provided by SK Ecoplant

However, the tax reform is leading to greater instability in the jeonse and monthly rental markets. As non-resident single-home owners increasingly move in and occupy their properties in response to the new rules, tenants are being pushed out in a market already suffering from a shortage of available rental units.

Amid these developments, officetels with floor areas of 60 square meters or less are emerging as an alternative for both one- or two-person households and investors seeking fresh opportunities.

According to the current Local Tax Act enforcement ordinance, officetels in the Seoul metropolitan area with an exclusive area of 60 square meters or less and an acquisition price of 600 million won or less, receiving approval for use between January 2024 and the end of next year, are excluded from the housing count for the purposes of acquisition, capital gains, and comprehensive real estate taxes if purchased for the first time. This means that not only people who do not own any homes, but also existing single-home owners acquiring officetels meeting these specifications will not face additional tax burdens.

Recently, newly launched officetels have been offering stronger residential functions with distinct bedrooms and living rooms, enhanced storage spaces, and better community facilities. The fact that officetels are usually supplied in locations close to major transportation stations or business districts is also driving demand.

SK Ecoplant is currently selling units in the residential officetel "Yeongjong SK View" in Yeongjong International City, Incheon. The officetel consists of 432 units, each with a floor area of 39 to 49 square meters.

The complex is just a five-minute walk from Unseo Station on the Airport Railroad, and provides convenient access to Seoul and other key areas in the metropolitan region via the Second Gyeongin Expressway, Yeongjong Bridge, and Incheon Bridge. In addition, the Cheongna Sky Bridge, which connects Yeongjong and Cheongna, was recently opened. The Yeongjong International City area is also well-equipped with residential infrastructure, including Lotte Mart, banks, hospitals, government offices, and large neighborhood parks.

Each unit features various built-in systems. Wide hallways, premium elevators, and an open-ended corridor design at both ends improve ventilation and convenience. There is ample storage space in the entryway, living room, and bedroom, and the complex is also planned to include landscaped areas, rest zones, and community facilities for residents.

DA Construction is selling a total of 99 officetel units with exclusive areas of 36 to 53 square meters, at "Terrace 99 Dongtan" in Dongtan 2 New Town, Hwaseong, Gyeonggi Province. The complex is within walking distance to Dongtan Station, served by both SRT and GTX-A lines. Most units are designed with a three-bay layout, with terrace and balcony-oriented designs included as signature features.

In Gwacheon, Eunil General Construction is offering the "Gwacheon Lexa" officetel, which consists of 136 units ranging from 22 to 49 square meters. Gwacheon Information Town Station on Subway Line 4, set to open next year, is nearby. Some units feature duplex designs and come with complimentary home appliances and built-in furniture.

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