Officetels Also Follow the 'GeoGeoIkSeon' Principle

Price Increase Rate, Medium to Large > Small to Medium

Due to the surge in apartment prices and the rental housing shortage, the sale prices of medium-to-large officetels are also rising.

According to the Korea Real Estate Board on the 5th, as of the end of May, the average sale price of officetels in Seoul was 253.19 million KRW, marking a 0.75% increase since July last year (251.31 million KRW).

In particular, the price increase trend is prominent in officetels with similar sizes to general small-to-medium apartments during this period. The average sale price of officetels with an exclusive area over 60㎡ and up to 85㎡ rose by 2.13%, from 478.73 million KRW to 488.90 million KRW. For those over 85㎡, the price increased by 2.05%, from 1.04748 billion KRW to 1.06923 billion KRW.

On the other hand, the price of officetels under 40㎡ only rose by 0.08%, from 186.61 million KRW to 186.76 million KRW. Officetels between 40㎡ and 60㎡ increased by 0.98%, from 320.37 million KRW to 323.51 million KRW, with the growth rate falling short of 1%.

The Korea Real Estate Board explained, "As housing prices generally rise, demand has flowed into medium-to-large officetels as residential substitutes, leading to a simultaneous increase in officetel prices."

Demand for high-priced officetels is also on the rise. According to Real Estate Info, a real estate market analysis firm, which analyzed actual transaction prices from the Ministry of Land, Infrastructure and Transport, the number of officetel transactions over 900 million KRW increased from 220 cases in 2019 to 366 cases last year. Transactions from January to May this year totaled 122 cases, which is a 31% increase compared to 93 cases during the same period last year.

Kwon Il, head of the research team at Real Estate Info, said, "In the Gangnam area, where new apartment supply is limited, demand is emerging for luxury officetels as substitutes for Gangnam apartments. Recently supplied officetels feature premium finishes and residential services, catering to the preferences of high-end demand segments."

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