After the government announced real estate measures on October 15, the demand for office-tels has become more noticeable as loans for apartments (APT) were restricted. Office-tels, which can be used both for personal use and investment, are emerging as an alternative to apartments.
According to the Ministry of Land, Infrastructure, and Transport’s real transaction disclosure system, there were a total of 760 office-tel sales in Seoul from October 16 to 31, following the policy’s implementation. This is approximately 2.6 times the 289 transactions in the period from October 1 to 15, before the measures were announced. In contrast, apartment sales in Seoul dropped to about one-third of the previous amount, from 5,262 to 1,640 transactions.
Real estate experts interpret the rapid change in the transaction volume of apartments and office-tels as a “balloon effect,” triggered by the government’s strong apartment regulation policies, which caused a shift in demand to office-tels as an alternative product.
The regulatory differences are cited as reasons for the increased interest in office-tels among both residential and investment demand: Office-tels are classified as “quasi-housing” under construction law and are not subject to many regulations applied to apartments, such as account subscription requirements, mandatory occupancy, and financing plan submission. While the Loan to Value (LTV) ratio for apartments in regulated areas is limited to 40% or less, office-tels maintain a maximum allowance of 70%, making them attractive. Despite being classified as housing under tax law, they retain non-homeowner qualifications, which appeals to potential apartment buyers. This structure has led industry analysts to believe that office-tels are being considered as an “efficient residential choice” or an “investment platform” by people in their 20s to 40s as well as investors in their 50s to 70s.
Beyond the increase in volume, changes in price and profitability indicators in the office-tel market are also being noted. For example, as of October, the sales price index of office-tels in Seoul rose by 0.1 points to 124.6, recording the highest level of the year. The recent rental profit rate has also been noted at 4.8%, which is the highest since 2018.
However, not all office-tels are promising for residency and investment. Experts advise careful consideration, focusing on those with competitive location conditions and a certain level of marketability. Representative promising areas for office-tel investment include the three Gangnam districts, which recently recorded a high apartment price growth rate, as well as Bundang and Gwacheon in Gyeonggi Province.
Amidst this trend, “Gwacheon Lexa” office-tels are gaining attention among investors and residents. This complex is located at the center of Gwacheon Knowledge Information Town, which is rapidly growing as a hub of high-tech industries in Gwacheon. It sits opposite the expected site of the Gwacheon Information Town Station on Subway Line 4 and Netmarble G-TOWN, promising further increase in location value.
The Gwacheon Lexa project consists of 136 units, with exclusive areas ranging from 22 to 49 square meters, designed to appeal to single to three-person households seeking proximity to work. Some units feature duplex structures offering high ceilings and practical interior space, with various home appliances and storage furniture offered free of charge.
The commercial facilities of “Gwacheon Lexa,” set to be the focal point of Gwacheon Knowledge Information Town’s business district, are also generating high expectations. With roughly 8,400 adjacent households and a working population of about 27,000, it offers a solid foundation of demand, strategically located along key residential and commuter routes to naturally attract foot traffic.
In particular, value is expected to increase due to its corner location on a major road, designated as a “top-tier location” even within the knowledge town, forming a street shopping district frequented by residents and office workers from nearby apartments and corporate offices. Additionally, with the scheduled opening of Gwacheon Information Town Station in 2027 right in front, the value of station-area commercial facilities is projected to rise further.
Being a post-construction sale product set to be completed in 2025, Gwacheon Lexa’s ability to offer an actual view of the units is positively received, increasing consumer trust. Sample houses are open for viewing starting December 2025.