"Now Over 300 Million Won"...Officetel Owners Hit Jackpot as Apartment Regulations Tightened

[The Financial News] Officetel prices in Seoul have risen for 12 consecutive months through this month.
According to January officetel statistics released by KB Real Estate on the 25th, the sale price of officetels in Seoul Metropolitan City climbed 0.04% from December last year, marking a 12‐month streak of gains. However, the pace of increase slowed compared with the previous month’s 0.52% rise.
By floor area, large officetels with an exclusive area of more than 85 square meters recorded the highest increase at 0.48%. Even so, the growth rate dropped sharply from last month’s 2.39% gain. Mid‐to‐large units (over 60 square meters and up to 85 square meters of exclusive area) rose 0.27%.
Analysts say the trend reflects demand flowing into officetels, especially larger and mid‐to‐large units, after the October 15 Housing Market Stabilization Measures designated all of Seoul as an Area Subject to Adjustment, a Speculative Overheating District, and a Land Transaction Permit Zone, thereby tightening regulations on apartments while leaving officetels relatively less restricted.
However, sale prices for medium‐sized officetels (over 40 and up to 60 square meters of exclusive area), small units (over 30 and up to 40 square meters), and very small units (30 square meters or less) fell by 0.02%, 0.03%, and 0.21%, respectively.
Nationwide officetel sale prices also slipped 0.01%, turning downward for the first time in three months since a 0.03% drop in October last year.
This month, the average officetel sale price was 262.74 million won nationwide, 272.73 million won in the Seoul metropolitan area, and 195.85 million won in the five metropolitan cities.
Within the Seoul metropolitan area, average sale prices were 307.7 million won in Seoul Metropolitan City, 262.19 million won in Gyeonggi Province, and 166.22 million won in Incheon.
The average officetel jeonse (lump‐sum lease) price was 203.89 million won nationwide, 213.72 million won in the Seoul metropolitan area, and 136.76 million won in the five metropolitan cities. By region within the Seoul metropolitan area, average jeonse prices were 236.35 million won in Seoul Metropolitan City, 209.5 million won in Gyeonggi Province, and 133.78 million won in Incheon. Rental yields in the Seoul metropolitan area were 4.85% in Seoul Metropolitan City, 6.33% in Incheon, and 5.50% in Gyeonggi Province.


moon@fnnews.com Moon Young-jin Reporter