Seoul apartments have 'turned upward'... Officetel still bowing its head

A cold wind is still blowing in the Seoul officetel market. There is no sign of recovery, with trading prices still falling sharply and trading volumes continuing to decline. This is in contrast to the positive atmosphere emerging as apartment prices in Seoul turned upward in a year.

On the 26th, as a result of analyzing the data of the Korea Real Estate Agency's subscription home by Real Today, a real estate marketing company, the competition rate for officetel subscriptions nationwide from January to May this year was 4 to 1. As of January to May every year, it is the lowest among 25.2 to 1 in 2020, 4.8 to 1 in 2021, and 13.8 to 1 in 2022. There are only 12 officetels that have been subscribed so far this year, and even 6 of them have fallen short.

Prices are also down. According to the Korea Real Estate Agency's 'April 2023 Officetel Price Trend Survey Report', the sales price of officetels nationwide fell 0.36% last month. The decline has decreased from last February (-0.39%) and March (-0.36%), but the decline is steep compared to apartment sales prices. Seoul recorded -0.27%, a slight decrease from last month (-0.28%).

Supply has also decreased. According to Real Today, 오피사이트 the supply of officetels nationwide until May this year was 2,277 households. From January to May 2020, the supply of officetels was 8162 cases. It steadily decreased to 7669 cases in 2022 and 6139 cases last year, but this year it plunged to a third compared to the same period last year. The transaction volume is also decreasing, with 963 cases in February, 716 cases in March, and 610 cases in April.

On the other hand, apartments are on the rise every day. According to click here the Korea Real Estate Agency, weekly apartment prices in Seoul in the 4th week of May rose 0.03% compared to the previous week. This is the first rise in 13 months since recording 0.01% in the first week of May last year. In particular, Gangnam District 3 (Songpa-gu 0.26%, Gangnam-gu 0.19%, Seocho-gu 0.13%) led the rise.

Sales prices are also on the rise, especially in Gangnam 3-gu. For example, the 145㎡ Dongbu Centerville type in Daechi-dong, Gangnam-gu, Seoul, which was traded for 4.18 billion won on the 22nd of last month, was sold for 4.5 billion won on the 19th, rising by 320 million won in one month.

Leave a Reply

Your email address will not be published. Required fields are marked *