June Seoul Metropolitan Area Mid-to-Large Office-tel Jeonse Price Increase Rate Hits Record High

After the New Lease Law Deepens Apartment Jeonse Shortage, Demand Shifts to Medium-Large Office-tels
Pre-sale Demand Surges in Gyeonggi and Incheon Nearing 3rd New Town Launch

[Asia Economy Reporter Onyu Lim] In June, the rental price increase rate for medium-to-large officetels in the Seoul metropolitan area reached an all-time high. This is interpreted as a result of demand flowing into medium-to-large officetels, which serve as substitutes, due to the worsening apartment rental shortage following the implementation of the new Lease Protection Act. In particular, the rise was prominent in the Gyeonggi and Incheon areas as the pre-subscription for the 3rd new towns approached.

According to the Korea Real Estate Board on the 16th, the rental price for officetels in the Seoul metropolitan area with an exclusive area exceeding 60㎡ but not exceeding 85㎡ rose by 0.59% compared to the previous month. This is double the previous month's increase rate of 0.28%. During the same period, the rental price for officetels exceeding 85㎡ also rose by 0.57%. Both are the highest increase rates since the statistics began in August last year. This contrasts with the increase rates for small officetels under 40㎡ and those between 40㎡ and 60㎡, which were only 0.17% each.

Medium-to-large officetels have recently emerged as popular alternatives to apartments. Since the implementation of the new Lease Protection Act in July last year, as the apartment rental shortage continued, demand has shifted towards officetels.

In particular, Incheon and Gyeonggi saw a surge in relocation demand ahead of the pre-subscription for the 3rd new towns. Rental prices for officetels have risen mainly around stations with good access to Seoul. In Gyeonggi, the rental price increase rates for officetels exceeding 60㎡ but not exceeding 85㎡ and those exceeding 85㎡ were 0.71% and 0.79%, respectively, both at record-high levels. In Incheon, the increase rate for officetels between 60㎡ and 85㎡ also reached a record high of 0.62%. Although the increase rate for those exceeding 85㎡ was 0.64%, down from the 1% range seen in April and May, it still remained high.

The upward trend in medium-to-large officetel rental prices is also reflected in actual transaction statistics. An 84.91㎡ unit at Hillstate Misa Station Grand Passage in Mangwol-dong, Hanam, was reported as leased for 650 million KRW on the 3rd, up 50 million KRW from 600 million KRW in January. In Songdo-dong, Yeonsu-gu, Incheon, an 84.02㎡ unit at Hillstate Songdo The Terrace was traded for 370 million KRW in mid-May, while a similar-sized 84.96㎡ unit was contracted for 400 million KRW on the 6th, a 30 million KRW increase in less than two months. A real estate agent near Mangwol-dong, Hanam, said, "Since apartment rental prices in Hanam have risen significantly, medium-to-large officetel rental prices are also rising accordingly. Mainly young people or newlyweds who could not find apartment rentals are looking for these, and currently, it is not easy to find available units."

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