Apartment price surge lifts officetels too ... prices rise for 17 straight months

[Financial News] As apartment sale prices and jeonse prices continue to rise together over an extended period, led by Seoul, the upward trend is spreading to the residential officetel market, an alternative to apartments.
On the 27th, according to the Korea Real Estate Board's Real Estate Statistics Information, Seoul home sale prices rose 0.84% in September, continuing their upward trend for 30 consecutive months since April 2024. Jeonse prices have also been rising for 20 straight months since February 2025.
The effects of rising home prices are spreading to the officetel market. In particular, growing preference for residential properties that can serve as an alternative to apartments is driving price increases. According to the Korea Real Estate Board, sale prices for mid-sized officetels with exclusive areas of more than 60 sq. m and no more than 85 sq. m rose for 17 consecutive months from May 2025 through this September, for a cumulative increase of 3.17%. Prices for large officetels with exclusive areas of more than 85 sq. m have also been rising for 18 consecutive months.
Monthly rents are also rising sharply. Seoul officetel rents rose 0.37% in September from the previous month, the highest monthly increase since the relevant statistics began in January 2018. The main causes are thought to be an influx of alternative demand amid the burden of apartment prices and jeonse costs, and heightened scarcity resulting from a decline in new supply. In fact, the 103-sq.-m exclusive-use unit at Cheongna Arc One Prugio in Incheon has reached 1.1 billion won, signaling the full arrival of the 1-billion-won era for officetels in the Seoul metropolitan area.
Amid this backdrop, attention is also turning to new officetel projects in key areas of the Seoul metropolitan area that offer strong locations and quality features.
POSCO E&C plans to sell officetels at The Sharp First World Seoul this November, on the site of the former Sangbong Terminal in Sangbong-dong, Jungnang District, Seoul. The development will comprise 308 units, all with an exclusive area of 84 sq. m, in a building with eight basement levels and 49 above-ground floors. Together with the 999 apartment units that have already sold out, it will form a large-scale complex of 1,307 units. Its prime location near Sangbong and Mangu stations could bring a “penta-station-area” premium if the GTX-B Line opens in the future.
BYC Co., Ltd. is selling GD Metro Tower in the Daerim 2-dong area of Yeongdeungpo District, Seoul. The project will have seven basement levels and up to 40 above-ground floors. Of its 1,095 residential officetel units, 770 in Building B are being introduced first. It is located near Guro Digital Complex Station on Seoul Subway Line 2.
Daewoo Engineering & Construction Co., Ltd. plans to build Cheongna Arc One Prugio on Block M5 in Cheongna International City, Seo-gu, Incheon. The mixed-use complex will have five basement levels and up to 49 above-ground floors, with 1,855 units in total, including 987 residential officetel units. It is attracting attention for its location near Hana Dreamtown, a project of Hana Financial Group.
A real estate industry source said, “With fatigue over surging home prices and a shortage of new housing supply converging, buyers are becoming increasingly interested in residential officetels as an alternative to apartments.”

[email protected] Jeon Min-kyung Reporter