In January, the nationwide transaction volume of officetels in South Korea increased by over 60% compared to the previous year due to tighter apartment loan regulations.
In January 2023, South Korea witnessed a significant increase in the transaction volume of officetels, marking a 65.6% rise from the same period last year, according to data analyzed by Zigbang's big data lab and the Ministry of Land, Infrastructure and Transport. This surge is largely attributed to the stricter loan regulations imposed on apartment purchases following government measures implemented in October 2022, which caused prospective apartment buyers to shift their focus toward officetels. Notably, the transaction volume of medium to large-sized officetels has expanded significantly, indicating changing consumer preferences amid financial constraints in the housing market.
The increase in officetel transactions saw both the metropolitan and non-metropolitan areas showing notable growth, with the metropolitan area up by 63.5% and non-metropolitan areas by 70.7%. Although small officetels comprised a majority of the transactions, the market for medium to large-sized officetels (60-85 m²) experienced a staggering increase of 126.8%, further highlighting the shift in demand. The data suggests a continuous upward trend in officetel transactions since August 2022, reflecting a broader move away from traditional apartment purchases due to financing difficulties.
Analyzing the geographic distribution of officetel transactions, Seongnam, specifically the Bundang area, recorded the highest number of transactions at 128 due to its proximity to various IT and gaming companies. In Seoul, Yeongdeungpo-gu led the transaction volume, followed by Songpa-gu and Mapo-gu, all of which are in close proximity to major business districts. Outside the capital, Busan reported 244 transactions of officetels, indicating a robust demand for this type of property in regions beyond Seoul.
