Officetel Demand for 'Mid-Sized Units for Owner-Occupancy' Rises Amid Housing Cost Pressures

Despite a 21.6% decline in total transactions in Seoul,
transactions for 40-60 sq. m units rose 8.9%
Nationwide, mid-sized and larger units gained share of transactions

As apartment prices and housing costs continue to rise, buyers in the officetel market are showing a preference not only for ultra-small units but also for mid-sized units suitable for owner-occupancy.

A real estate agency in Seoul. Yonhap News Agency

An analysis by Zigbang of officetel transaction prices reported to the Ministry of Land, Infrastructure and Transport found that last month, units with an exclusive-use area of more than 40 sq. m. accounted for 38.4% of individual officetel purchases nationwide, up 3.3 percentage points from September 2025.

There were 2,010 individual purchases nationwide, down 20.7%. Purchases of units larger than 40 sq. m. also fell, from 889 to 772, but the 13.2% decline was smaller than the overall drop. As transactions declined overall, those for relatively larger units fell less, increasing their share of individual purchases.

Preference for Mid-Sized Officetels More Pronounced in Seoul

Changes in transactions by floor area were more pronounced in Seoul. Last month, individual officetel purchases in Seoul fell 21.6% to 581, while units larger than 40 sq. m. accounted for 28.1% of purchases, up 5.3 percentage points from September last year and the highest share in the past year.

Units measuring 20 to 30 sq. m., which had the highest transaction volume, saw their share fall from 44% to 38.4%, while transaction volume declined 31.6% to 223.

Individual Purchases of Seoul Officetels, Share of Transactions by Floor Area. Zigbang

By contrast, the share of units measuring 40 to 60 sq. m. rose from 12.1% to 16.9%, and transaction volume increased 8.9% to 98. The share of units measuring 60 to 85 sq. m. also rose from 5.9% to 7.1%. However, the share of units larger than 85 sq. m. fell from 4.7% to 4.1%.

Share of Transactions for Units Larger Than 40 sq. m. Rises Across the Seoul Metropolitan Area

The share of transactions for units larger than 40 sq. m. also rose in Gyeonggi Province and Incheon. In Gyeonggi Province, it increased from 42.5% in September last year to 44% in September this year; in Incheon, it rose from 56.3% to 59.7%.

Busan saw a notable change among non-metropolitan areas. The share of individual purchases for units larger than 40 sq. m. rose 13 percentage points to 40.1%. However, the number of transactions for such units in Busan remained unchanged at 61 over the same period, meaning the increase in their share was also influenced by a decline in overall transactions.

Last month, units larger than 40 sq. m. accounted for more than 40% of individual purchases in some regions, including Jeonbuk at 50%, Daegu at 46.9%, Chungbuk at 42.9%, and Jeonnam and Gwangju at 42.6%. However, regional differences were also evident: the share fell in Daegu from 56.4% a year earlier to 46.9%, and in Daejeon from 37.2% to 22%.

Larger Units Also Show Relative Price Strength

Recent price trends also vary by floor area. According to the Korea Real Estate Board, in the third quarter of this year, prices of Seoul officetels measuring 40 sq. m. or less fell 0.06%, while those measuring 60 to 85 sq. m. rose 1.07% and those larger than 85 sq. m. increased 1.57%.

A Zigbang representative said, "Although the floor areas showing changes in transactions and prices differ, it is noteworthy that changes in both transactions and prices are being observed in relatively larger officetels. Housing costs remain high in Seoul's housing market, alongside the burden of apartment prices, so interest in the officetel market may grow not only in lower-priced, ultra-small units but also in units that provide the space needed for actual residence."

The representative added, "If the share of transactions for mid-sized units holds steady or expands in the future, it will be worth examining whether the criteria for choosing an officetel are broadening beyond price and rental income to include living space and usability. It will be important to continue monitoring whether the transaction mix in the officetel market, which has been centered on ultra-small units, is truly changing."

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