Officetels Gain Popularity as Apartment Alternatives... ‘Hillstate Songpa The Grid’ First-Come, First-Served Contracts on October 3 (Sat)

- 18,035 Officetel Sales in the First Half of the Year
Transactions of Units Over 60 m² Surge by 21.44%

- October 3 (Saturday) at 10 a.m.:
Select Preferred Unit Type and Number First-Come, First-Served and Sign Contract Immediately

As entry barriers to buying and leasing apartments have increased, home seekers are turning their attention back to officetels as alternative residential options. In particular, mid- to large-size officetels suitable for actual residence are showing clear trends of heightened transactions and rising prices.

According to data from Real Estate R114, there were 18,035 officetel purchase transactions nationwide in the first half of this year. This represents an increase of 8.24% compared to 16,662 transactions in the first half of last year, and an 11.38% increase from the second half (16,192 transactions). Among these, transactions of officetels with exclusive areas above 60 square meters—which are considered substitutes for apartments—increased by 21.44% compared to the second half of last year, nearly double the overall growth rate.

At the individual complex level, actual transaction prices are also rising by several hundred million won above previous highs. According to the Ministry of Land, Infrastructure and Transport, the exclusive 84-square-meter unit at Hillstate Gwacheon Jungang in Gwacheon, Gyeonggi Province, was sold last month for 1.12 billion won, which is a jump of 350 million won from 770 million won just three months prior in May.

Industry experts attribute the movement of demand toward residential-type officetels to the increased barriers in the apartment sale and jeonse (long-term lease) markets. Increases in both apartment sale prices and jeonse values, particularly in Seoul and the greater metropolitan area, have combined with a shortage of available properties, narrowing housing options for buyers. Tightened lending regulations and higher tax burdens have also increased the financial strain associated with purchasing an apartment. In contrast, officetels often have lower purchase prices compared to apartments in the same neighborhoods, and mid- to large-sized units offer residential spaces comparable to apartments. As a result, both the sales and lease markets are reassessing officetels as viable alternative housing options.

An industry official commented, "With new officetel supply declining recently, the limited available units will likely drive demand towards newly built officetels with superior residential conditions."

In fact, according to Real Estate R114, the number of officetel units available for occupancy nationwide upon completion was 37,957 nationwide, and 28,670 in the Seoul metropolitan area last year, but dropped to 13,129 and 7,344 respectively this year. Next year, those figures are projected to decrease further to 6,753 and 3,728, and by 2028, to 5,775 and 1,355, respectively.

Amid this trend, Hyundai Engineering & Construction is set to conduct a first-come, first-served unit and block designation contract for the remaining units of ‘Hillstate Songpa The Grid’ in the Jangji-dong area of Songpa-gu, Seoul at its model house on October 3 (Saturday) at 10 a.m. Visitors can choose their preferred unit type and location in order of arrival and complete the contract on-site.

The complex consists of 10 buildings with 4 basement levels and 16 aboveground floors, offering a total of 1,393 units with exclusive areas ranging from 34 to 119 square meters, spread across 57 layout types. During the subscription held through Cheongyak Home on Monday, the 14th, the 75–79 square meter types saw 618 applications for 53 units, posting the highest competition ratio at 11.7 to 1. This continued interest is attributed to the Hillstate brand, the large-scale development, its proximity to Bokjeong Station, and the current surge in demand for mid- to large-sized officetels.

The contract terms have been designed to ease the initial financial burden. The contract deposit is 10% of the sales price, but the first installment is set at a flat rate of 10 million won, and the first interim payment is fixed for late October 2027—approximately a year from now—reducing the loan interest burden. For the small-sized units (34–36 square meters), interest-free interim payment options are also available. Unlike apartments, officetels are not subject to loan-to-value (LTV) limits based on housing price brackets, so the maximum LTV can reach up to 70%.

Hillstate Songpa The Grid is part of a development project that integrates residential, work, and commercial functions, allowing residents to benefit from not only the residential facilities but also the surrounding living infrastructure that will be established in the area.

The location of the complex, Songpa-Wiryeseo The Grid, forms the core of the Bokjeong Station Smart City. The project, led by Songpa Biz Cluster PFV Co., Ltd., spans a land area of approximately 219,000 square meters and a total floor area of around 1.66 million square meters, with a total project cost exceeding 13 trillion won. Hillstate Songpa The Grid is located in Complex 3, while Complex 2 will house the HMG Future Complex, dedicated to Hyundai Motor Group’s future technology research in areas such as software-defined vehicles (SDV), autonomous driving, and robotics. A shopping mall operated by Hyundai Department Store is planned for the first basement level, with F&B (Food & Beverage) outlets also expected. For example, ‘The Hyundai Seoul’ in Yeouido has attracted steady crowds by focusing on unique F&B brands, making it a popular destination. This F&B-focused commercial development strategy is also expected to boost the local commercial district.

Bokjeong Station, within walking distance, serves as a transfer point for both Seoul Subway Line 8 and the Suin-Bundang Line, making it a double transfer hub. Suseo Station, just one stop away on the Suin-Bundang Line, provides further connectivity to the SRT, GTX-A and Line 3. The Wirye Line Tram, which will connect Macheon Station (Line 5) with Bokjeong and Namwirye Stations (Line 8), is currently undergoing trial runs and is scheduled to open in December this year, adding triple transportation premium to the area. Future plans for the Wirye Shinsa Line are expected to further improve transport conditions.

Within each unit, a 2.42-meter-high tray ceiling enhances the sense of openness, and each residence is equipped as standard with a front entrance door, refrigerator, and induction cooker. Dedicated storage units are provided for each residence to store large items separately, and parking spaces have been planned generously at an average of 1.19 vehicles per residence.

The community facilities include an indoor golf practice range with GDR bays and one screen golf simulator, plus fitness, Pilates, and GX rooms for exercise, as well as male and female saunas, the Hills Lounge for relaxation, a small library, guesthouse, a coin laundry room, the eco-friendly ‘H iForest’ play area featuring Hyundai E&C’s air purification technology, and the ‘H With Pet’ pet spa and drying facilities dedicated to pets.

A sales representative stated, “This first-come, first-served contract opportunity is likely the final chance for buyers to secure a residential position in Songpa-gu in the current market where demand for officetels is surging. The site enjoys the advantage of double transfer at Bokjeong Station, is only one stop away from Suseo Station, and benefits from major future development highlights like HMG Future Complex, making it highly attractive.”

The model house is located in the Jagok-ro area of Gangnam-gu, Seoul.

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