Server Crashes as Subscription Site Opens... Focus on 'Non-Residential Subscription' (Comprehensive)

‘Lotte Castle De Mer’ Attracts High Demand, Access Unavailable Throughout First Day of Subscription
Balloon Effect of Residential-Style Lodging and Officetels Free from Resale and Loan Regulations

[Asia Economy Reporter Ryu Tae-min] The investment atmosphere for non-apartment products is becoming intense. With low interest rates flooding the market with idle funds, and the government imposing multiple layers of regulations on apartments, a balloon effect is spreading where investors are flocking to similar housing products such as residential lodging facilities and residential officetels.

According to the industry on the 17th, 'Lotte Castle De Mer,' a residential lodging facility in Choryang-dong, Busan, which is accepting applications for two days starting this day, experienced a server crash due to the influx of applicants. The company began accepting applications through its website from 10 a.m., but soon faced access issues, and even by 3 p.m., one hour before the first day's deadline, applications had not been processed. A company official said, "We had increased the website server capacity in advance expecting many applicants, but we did not anticipate this level of popularity." Previously, the Lotte Castle De Mer's sample exhibition hall also experienced a temporary server crash due to a surge in pre-visit reservations.

A sales official said, "Since the opening, not only website visits but also inquiries about application methods and eligibility requirements have poured in, showing very high interest from demanders," adding, "Especially with ocean view rights and the future value of the Bukhang redevelopment increasing, interest continues unabated not only from within Busan but also from residents in Seoul and other metropolitan areas."

This complex, located in the D-3 block of the Busan Bukhang redevelopment zone, is a super high-rise mixed-use building with two towers ranging from five basement floors to 59 above-ground floors. Notably, the residential product is supplied as a residential lodging facility rather than an apartment. It consists of a total of 1,221 units with exclusive areas ranging from 45 to 335 square meters. Except for some penthouses, most units are small to medium-sized. The detailed types include △45㎡A 42 units, △45㎡B 54 units, △46㎡A 400 units, △46㎡B 12 units, △71㎡A 103 units, △71㎡B 105 units, △90㎡A 205 units, △90㎡B 126 units, △91㎡ 105 units, △314㎡ 7 units, and △335㎡ 7 units.

The surge in demand appears to reflect expectations for Korea's first port redevelopment project. Currently, the Bukhang redevelopment is in its second phase, attracting attention as a linked development including the port, railway, and the old downtown area.

Experts point out that one reason for the popularity is that investors' interest has increased as these non-regulated products can avoid the recently intensified apartment regulations. Residential lodging facilities are subject to the Building Act rather than the Housing Act, allowing applications regardless of subscription savings accounts or subscription points. There are no restrictions on resale of pre-sale rights, and they are exempt from comprehensive real estate tax and capital gains tax surcharges. Since individual registration is possible, free trading is allowed, and capital gains can be expected. Loan regulations do not apply either.

Yoon Ji-hae, senior researcher at Real Estate 114, said, "Unlike before, the number of mid-sized officetels with two or three rooms is increasing, leading to more demand as an alternative to apartments," adding, "Recently, large officetel complexes with over 1,000 households equipped with sufficient community facilities have emerged, targeting niche markets."

Seo Jin-hyung, professor at Gyeongin Women's University and president of the Korea Real Estate Society, said, "As apartment prices in Seoul and the metropolitan area have risen sharply recently, demand has concentrated on residential officetels as a balloon effect," adding, "They are popular among younger generations because they can enter the subscription market without difficulty while avoiding strict apartment loan regulations."

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