Issue Focus

The era of 1 million unit of officetel in the Korean real estate market has begun in 2022. Now is the time to balance achievements and faults. Many of the officetels have been supplied to the seoul metropolitan area and are used for residential purposes. Most of them are located in commercial areas and are located in areas with good infrastructure within 3km from a subway station. More than 70% of households are single-person households, and the proportion of those in their 40s or younger is 77.4%. 80.4% of them are used as rental housing, and the majority are monthly rent with security deposit and short-term residence within two years. On the other hand, the expected capital yield for officetels is low, and the real income yield is below 4%. Considering the low turnover and holding period, investment attractiveness is low compared to apartments. Officetels have been responding to the housing demand of single-person households. And used as private rental housing. It plays the role of a ladder for housing movement, and overall housing satisfaction is high. It is necessary to properly recognize the essence of the officetel and set the appropriate status for it. In order to respond to the changing demand for space after the pandemic, institutional support that can maximize its advantages is needed.