▲ Officetel (File Photo)
As the Seoul apartment market continues to experience a triple surge in sales, jeonse (long-term deposit rental), and monthly rent prices, the prices of officetels—a common alternative housing option—are also on the rise.
According to the Korea Real Estate Board's second-quarter officetel price trend survey released on July 15, the sales price of officetels in Seoul rose by 0.24%, an increase from the 0.23% growth seen in the previous quarter.
The Korea Real Estate Board explained that the upward trend is driven by growing demand for officetels in city centers with convenient transportation, areas near subway stations, and relatively new buildings.
The rise in rental prices was particularly notable.
In the second quarter, Seoul's officetel jeonse prices rose by 0.40%, and monthly rent prices increased by 0.90%, both showing larger gains compared to the previous quarter's 0.24% and 0.75%, respectively.
As the supply of apartment jeonse and monthly rentals in Seoul decreases and prices remain strong, rental demand is shifting toward officetels. Specifically, demand for mid-to-large-sized units is rising for jeonse, while demand for units near subway stations—favored by university students and office workers—is driving the monthly rent market.
The rise in monthly rent was especially prominent in Seoul's northwestern region, which saw a 1.33% increase, and the southeastern region, which saw a 1.12% increase, both exceeding 1% in the second quarter.
On a national level, the decline in officetel sales prices narrowed from -0.41% in the first quarter to -0.30% in the second quarter.
Jeonse prices shifted to an upward trend, rising 0.09% in the second quarter after a -0.09% decline in the first quarter, while monthly rent prices saw their growth accelerate from 0.66% to 0.71%.
The conversion rate, which is applied when converting a jeonse deposit into monthly rent, stood at 6.62% nationwide as of June, up from 6.45% in March.
In Seoul, the rate also rose to 6.06% as of June, compared to 5.96% in March.
(File Photo: Yonhap News)
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