Officetel sales price index South Korea 2022-2023

According to a survey conducted on the officetel real estate market in South Korea for the second quarter of 2023, the sales price index of officetels stood at 99.7 as of June 2023. Figures have seen a continuous decline in the past 10 months. Officetels are typically categorized as commercial units that can be used for commercial and residential purposes in South Korea.

Regional price variation in South Korea

Rising interest rates have impacted declining real estate prices. However, prices of officetels and office buildings vary greatly based on region. For example, rental prices of office buildings in Seoul were almost double that of the second-highest province, Gyeonggi, in the second quarter of 2023.

Smaller households and officetels in South Korea

Over a third of a million households lived in non-residential buildings, under which officetels are categorized, in South Korea as of 2021. These units are commonly used by those requiring fewer amenities than the average household, such as single-person households or students looking for accommodation near university campuses. For some, officetels offer a practical solution for long commutes that span different cities, preferring to stay near the office at an officetel on weekdays and returning home on the weekends.