Transit-Oriented Studio Apartment 'Hillstate Cheongnyangni The First' Draws Attention

Recently, the residential officetel market has been showing signs of recovery. Complete sell-outs have been occurring consecutively in the officetel subscription market, and monthly rents have been rising due to the aftermath of jeonse fraud, leading to higher yields. Additionally, investment demand has partially recovered as the government excluded small-sized housing from the housing count.

With growing expectations for interest rate cuts in the second half of this year, there are forecasts that sales prices will rebound.

Seoul officetel sales prices have also increased. According to KB Real Estate's April monthly officetel statistics, Seoul officetel sales prices rose by 0.03% compared to the previous month, marking an upward turn after five months. Seoul officetel sales prices had been declining for four consecutive months from December last year (-0.11%), January (-0.04%), February (-0.05%), to March (-0.03%) this year.

Officetel monthly rent prices are also on the rise. According to the first quarter officetel price trend survey released by the Korea Real Estate Board, the nationwide officetel monthly rent price index has increased for 10 consecutive months since June last year. In March, it rose by 0.07% from the previous month to 100.22. This is the highest figure since the Korea Real Estate Board began related surveys in January 2018.

The officetel jeonse-to-monthly rent conversion rate also exceeded 6%. According to Korea Real Estate Board statistics, the conversion rate in March was 6.11%, marking an all-time high. It first surpassed 6% in January at 6.01% and recorded 6.07% in February. Nationwide officetel yields also maintained a steady 5% range since last year, recording 5.3% as of March.

The recovery trend in the officetel market appears to be influenced by the government's relaxation of regulations on small-sized housing, including officetels, through the 1·10 measures. From January this year to December next year, officetels with exclusive area of 60㎡ or less (under 600 million KRW in the metropolitan area and under 300 million KRW in provincial areas) completed during this period will be excluded from the housing count when calculating acquisition tax, capital gains tax, and comprehensive real estate tax.

A real estate expert stated, “With the increase in single-person households and the high residential satisfaction of officetels equipped with full options such as refrigerators and washing machines in locations close to workplaces in Seoul, ultra-small and small officetels are worth considering as income-generating products that can provide stable monthly rental income or as part of diverse asset management.” He added, “It is expected that continuous interest will be maintained in properties with high yields and low vacancy risks.”

In fact, as officetels continue to gain popularity, the ‘Hillstate Cheongnyangni The First’ officetel complex near Cheongnyangni Station, which has many development prospects, has attracted high interest by surpassing a 90% balance payment rate just three months after move-in began. Furthermore, for commercial facilities, over 95% of contract holders have completed their balance payments, indicating growing investor interest.

‘Hillstate Cheongnyangni The First’ is attracting even more attention not only because it is an officetel near a station but also due to abundant nearby development prospects.

Indeed, the Cheongnyangni Station area has ongoing development plans that are expected to increase its future value. Construction companies have already been selected and projects are underway for Cheongnyangni District 6 (GS Construction), Districts 7 and 8 (Lotte Construction), and Jegi Districts 4 (Hyundai Construction) and 6 (SK Ecoplant). Additionally, redevelopment projects such as Miju Apartments and Jeonnong Districts 9 and 12 are continuously progressing, which is expected to further enhance the area's value.

Especially, a massive transportation boon is awaiting at Cheongnyangni Station. In addition to the six lines currently operating at Cheongnyangni Station?Line 1, Suin-Bundang Line, Gyeongui-Jungang Line, Gyeongchun Line, KTX Gangneung Line, and Jungang Line?four new lines are planned: the Metropolitan Area Express Railway (GTX) B Line (Songdo-Maseok), GTX C Line (Deokjeong-Suwon), Myeonmok Line (Cheongnyangni-Sinnae-dong), and Gangbuk Transversal Line (Cheongnyangni-Mokdong). A complex transfer center connecting these lines will also be constructed. In the future, Cheongnyangni Station will become a 'transportation hub' where 10 lines (including planned ones) stop. There are only three places in Seoul where two GTX lines stop: Seoul Station, Samseong Station, and Cheongnyangni Station. According to the Ministry of Land, Infrastructure and Transport, Cheongnyangni Station had 150,000 users in 2020, and this number is expected to increase to 300,000 by 2030.

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