Appeared in Gangnam-Seocho-Gangseo, Seoul, etc. “Loss of competitiveness for ‘investment’ due to real estate slump”
As the real estate market continues to stagnate due to high interest rates, the investment real estate market, such as officetels, is also rapidly freezing. For a while, it became popular as an alternative product for apartments, and the pre-sale price soared and the competition rate was high.
According to the real estate industry on the 15th, at the time of supply in September 2021, a subscription competition rate of 657 to 1 caused an’investment frenzy’ in’Lotte Castle LeWest’, a living accommodation facility in Magok Special Planning Area, Gangseo-gu, Seoul. Mapi’ appeared for sale. The price was high enough that the sale price for an exclusive area of 49㎡ was set in the late 800 million won range, but as the house price declined due to high interest rates, the winners of the subscription are shaking off the sale even at a loss.
Officetel ‘Elluke Banpo’ near Gyodae Station, which was sold in Seocho-gu, Seoul in March 2021, was also formed with a map of up to 100 million won ahead of move-in in June. ‘Lucia Dosan 208’, an urban living house in Nonhyeon-dong, Gangnam-gu, Seoul, which is scheduled to move in in July this year, is in a similar situation.
Until last year, residential officetels gained popularity as they were regarded as relatively low-priced substitutes due to the sharp rise in apartment prices. According to Real Estate R114, the sale price of officetels across the country rose from 11.66 million won per 3.3 square meters in 2020 to 12.96 million won in 2021 and 15.73 million won last year. However, it means that real estate products for investment, which were recently supplied at high pre-sale prices, are being ignored due to the real estate slump. Yeo Kyung-hee, a senior researcher at Real Estate R114, said, “Due to the decline in apartment prices, real estate products for investment have lost their price competitiveness.
Reporter Jeong Soon-gu soon9@donga.com
