"Millions with One Click"... Year-End Frenzy in Non-Residential 'Chopi' Market

120,000 Applicants for 100 Rooms
Bold Sales Tactics with 30 Million Won Deposit

On the afternoon of the 5th, immediately after the announcement of the winners for the officetel 'Singil AK Prugio,' which attracted 120,000 applicants, real estate agents gathered in front of a large supermarket in Mok-dong, Yangcheon-gu, Seoul. On that day, the premium for the pre-sale rights of the officetel was quoted at around 70 million KRW.

"The officetel in Singil-dong, Yeongdeungpo-gu, Seoul reportedly had an 'chopi' premium of up to 70 million KRW. Will there be properties like this this year?"

At the end of the year, the real estate investment market is flocking to non-residential products such as officetels and residential hotel facilities. Amid growing concerns over falling house prices due to a stagnant market, investment demand aiming for short-term profits is concentrating on these products that allow resale. Promotional posts advertising 'resale possible' are flooding real estate communities, and related group communities and 'online floating real estate offices' are springing up like mushrooms. However, as the market shows signs of overheating, the government is reportedly considering regulatory measures such as resale restrictions, so investors need to exercise caution.

According to the real estate industry on the 10th, a large number of non-residential products that allow 'chopi' transactions are scheduled for sale by the end of the year. 'Chopi' is a shortened term for 'initial premium,' referring to the premium on pre-sale rights that is attached before the actual contract is made right after the announcement of the successful pre-sale applicants.

Last week, the officetel subscription frenzy heightened expectations for properties with chopi potential. The officetel 'Singil AK Prugio,' which accepted subscriptions on the 3rd, attracted over 120,000 applicants for 96 units, recording an average competition rate of 1312 to 1. The 'Hillstate Gwacheon Cheongsayeok,' which was sold a day earlier, also showed a record-high competition rate of 1398 to 1. In the provinces, the 'Duryu Station Xi' in Seo-gu, Daegu, which closed subscriptions on the 4th with 86 units, attracted 58,261 applicants, reaching an average competition rate of 677 to 1.

The concentration of demand on these products is based on the short-term capital gain expectation that "you can earn an annual salary with just one click." In the case of Singil AK Prugio, the chopi asking price soared to between 50 million and 70 million KRW depending on the unit number immediately after the announcement of successful applicants on the 4th. From the day before the contract, mobile real estate offices (floating real estate offices) crowded around the model house, creating a bustling scene.

The reason why one can earn tens of millions of won in capital gains in just one day is that non-residential products can avoid regulations such as resale restrictions, unlike apartments. Since the resale restriction on pre-sale rights was implemented in September last year, officetels with 100 or more units sold in speculative overheated districts or regulated areas are prohibited from resale until ownership registration, but officetels with fewer than 100 units are not subject to this regulation. This is why construction companies design officetels with 99 or 96 units. In non-regulated provincial areas, resale restrictions are also not applied.

As a balloon effect of apartment regulations causes not only actual demanders but also investors to flock massively to officetels, some 'bold sales tactics' have also appeared. The officetel 'Yongsan Twenty-First 99,' scheduled to announce recruitment in November, is reportedly setting the subscription deposit at 30 million KRW. Clever tricks that cleverly evade government regulations are also rampant. 'Byeollae Station Ziwell Estate' has a total of 165 units but is not subject to resale restrictions because the land is divided into Phase 1 (66 units) and Phase 2 (99 units) for sale. The 150-unit 'Hillstate Siheung Daeya Station' also avoided regulations in this way.

An industry insider warned, "For products that allow resale, you can expect a profit of up to several hundred million KRW without leveraging at all," but added, "If regulations are strengthened or the market shrinks, a risky situation may arise where you have to pay tens of millions of won in 'negative premiums' instead of capital gains."

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