In the fourth quarter of last year, the national officetel prices decreased compared to the previous quarter. The selling prices maintained their decline, while the jeonse prices saw an expanded decrease. The monthly rent increase was reduced.
On the 15th, the Korea Real Estate Board (REB) reported that the nationwide officetel selling prices in the second quarter decreased by 0.39% compared to the previous quarter. The decline from the prior quarter was maintained.
In the capital region, the decline expanded (-0.31%→-0.34%), while Seoul transitioned from an increase to a stable position (0.03%→0.00%), and the decrease in the provinces was reduced (–0.72%→-0.56%).
The Korea Real Estate Board (REB) noted, "As the apartment prices in Seoul increased, the medium and large officetels, which are substitutes for apartments, saw an increase, while the micro officetels, which account for the largest share of total inventory, decreased and transitioned from an increase to a stable position compared to the previous quarter."
In Incheon (-0.96%→-0.91%), the cumulative decline continued due to the anticipated delivery of officetel units, while inquiries for new construction officetels near subway stations increased, resulting in a reduction in the decline compared to the previous quarter. In Gyeonggi Province (-0.40%→-0.47%), the declining trend was led by new town areas with a high supply of new officetels, while investment demand decreased in older complexes, leading to an expanded decline compared to the previous quarter.
The provinces (-0.72%→-0.56%) saw a decline centered around regions with high supply, while some officetels in prime locations experienced a reduction in their decline due to actual demand, resulting in a smaller decline compared to the previous quarter.
The average selling prices were reported to be 221.66 million won nationwide, 276.90 million won in Seoul, 238.70 million won in the capital region, and 154.98 million won in the provinces.
By size, the prices fell by 0.42% for units under 40㎡, 0.28% for units over 40㎡ to under 60㎡, 0.39% for units over 60㎡ to under 85㎡, and 0.12% for units over 85㎡.
The jeonse prices for officetels nationwide decreased by 0.25%, with the decline widening (-0.22%→-0.25%). In the capital region, the decline expanded (-0.16%→-0.23%), while Seoul transitioned from an increase to a decrease (0.01%→-0.02%), and the provinces saw a reduced decline (-0.44%→-0.30%).
The monthly rent prices increased by 0.20% nationwide, with the increase reduced (0.49%→0.20%). Nationwide, this represented a reduction in the increase compared to the previous quarter at 0.20% (0.49%→0.20%). The capital region (0.56%→0.25%), Seoul (0.44%→0.28%), and the provinces (0.20%→0.04%) all saw a reduction in their increases.
Based on actual transaction data as of June, the nationwide officetel conversion rate for jeonse to monthly rent was found to be 6.35%, with 6.30% in the capital region, 1.01% in the provinces, and 5.87% in Seoul.
By region, the conversion rates were highest in Sejong at 8.55%, Ulsan at 7.20%, and Daegu at 6.93%, with Seoul recording the lowest at 5.87%.
Furthermore, the revenue of nationwide officetels was 5.55%, with 5.45% in the capital region, 5.97% in the provinces, and 4.94% in Seoul.
The ratio of jeonse prices to selling prices for nationwide officetels was reported at 85.18%, with 85.51% in the capital region, 83.87% in the provinces, and 84.48% in Seoul.