January Officetel Transactions Drop 10%... High-End and Large Units Gain Popularity

Seoul Metropolitan Area Officetel Transactions Down 13% Year-on-Year
Officetel Transactions Over 500 Million Won Up 141.7%
"Positive Outlook After 12·16 Measures Dampened by Spreading Slump"

[Asia Economy Reporter Onyu Lim] The officetel market, which was expected to pick up after the December 16 real estate measures, has cooled down. While the popularity of high-priced and large officetels has increased, the overall transaction volume has decreased by nearly 10% compared to a year ago.

On the 11th, the Commercial Information Research Institute analyzed statistics from the Ministry of Land, Infrastructure and Transport's actual transaction price disclosure system and found that nationwide officetel transactions in January totaled 2,066, down 9.9% from 2,292 in the same period last year.

Officetel transactions in the metropolitan area also declined. In January, Seoul officetel transactions were 686, down 4.2% from 716 in the same period last year. Gyeonggi Province (541▶489) and Incheon (279▶158) showed similar trends.

This is contrary to initial expectations. With the December 16 real estate measures strengthening the comprehensive real estate tax on high-priced homes and tightening loan regulations, some experts anticipated that investment demand would flow into officetels, which are relatively free from regulations.

Researcher Hyuntaek Cho of the Commercial Information Research Institute analyzed, "Contrary to expectations of a spillover benefit after the December 16 measures, officetel transaction volumes actually decreased, and among the officetels (over 300 units) launched after the measures, all three projects remained unsold. It seems the sluggish market sentiment has also affected the officetel market."

However, as an exception, transactions of high-priced or large officetels increased compared to the same period last year. Officetels traded for over 500 million KRW in January numbered 87, a 141.7% increase from 36 in the same period last year. Transactions of officetels with exclusive areas over 50㎡ also increased by 15, totaling 632 compared to 617 last year.

Researcher Cho analyzed the market, stating, "The popularity of officetels in areas with many office facilities such as Yeouido, Mapo, and Magok districts remains strong, and sales are relatively good, so the polarization of officetel markets by region is expected to deepen further."

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