Polarization in Residential Officetels... Is the Reason 'Location'?

Excellent Location Office-tels Near Major Transit Stations Continue to Sell Out
Office-tels Combining Comfortable Living and Strong Brands Gain More Popularity

The polarization phenomenon is becoming more pronounced even in residential officetels, which were very popular last year. While officetels in the city center see subscription competition rates soaring to hundreds to one, those in less favorable areas are being overlooked. Experts point out that indiscriminate investment in officetels should be avoided.

According to the industry on the 2nd, the 'Singil AK Prugio' officetel, launched by Daewoo Construction in Singil-dong, Seoul, last November, received 125,919 applications for a total of 96 units, recording an average subscription competition rate of 1,312 to 1. Due to the massive influx of applicants, the website server crashed, and the application deadline was extended from 5 p.m. to midnight.

In the same month, the 'Hillstate Gwacheon Government Complex Station' officetel supplied in Gwacheon City, Gyeonggi Province, also set a record with an average competition rate of 1,398 to 1.

Both complexes are located in areas with subway access, abundant education, green spaces, and living infrastructure, which contributed to their success and positive reception.

This trend is similar in provincial areas. The 'Hoban Summit Hive Park' officetel, supplied by Hoban Construction on the site of Lotte Mart Chilseong Branch in Daegu, reportedly recorded an average competition rate of 273 to 1 last month, with about 12,000 applications for 46 units of 84㎡ exclusive area. Since the officetel is developed alongside apartments, residents can share living conditions with the apartments. Also, as it has fewer than 100 units, there are no resale restrictions.

Earlier, in April last year, the residential officetel 'Hillstate Dalseong Park Station' in the Taepyeong-ro area of Daegu closed subscriptions with a competition rate of 179.7 to 1, receiving 12,941 applications for 72 units. This complex is a subway station area located within walking distance of Daegu Metro Line 3 Dalseong Park Station and has excellent living infrastructure such as Lotte Department Store, Homeplus, Opera House, Daegu Complex Sports Town, and Buk-gu Office, attracting real demand buyers.

On the other hand, the A officetel, launched in March of the same year in the Munhwa-dong area of Jung-gu, Daegu, only received 13 applications for 428 units. Its disadvantages included being more than a 15-minute walk from Daegu Metro Jungang Station and lacking nearby living convenience facilities.

The increase in officetel sale prices also correlates with location. For example, an 84㎡ officetel in 'Cheonan Buldang Park Prugio 2nd Complex' in Buldang-dong, Cheonan City, Chungnam Province, which was traded for 290 million KRW in October 2020, sold for 500 million KRW last October, rising by more than 200 million KRW in one year. The complex is conveniently located within walking distance of Cheonan Bulmu Elementary and Middle Schools and has nearby facilities such as Cheonan Sports Complex and neighborhood parks, making it a favorable location.

In contrast, the 'Hyunsong Town' officetel with a 74㎡ exclusive area in Sajik-dong, Cheonan City, located far from the station, has seen no price increase since October 2020, remaining at 148.36 million KRW.

An industry official said, "Recently, residential officetels with fewer regulations and lower subscription thresholds have emerged as alternative products to apartments, creating such a hot market that they sell out as soon as they are launched. Especially, since popularity continues around branded officetels in good locations, it is necessary to carefully examine newly supplied prime complexes."

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