Note

Officetel monthly rent is soaring. In a situation where the supply of officetels has decreased, the aftermath of jeonse fraud and the preference for monthly rents continue, and monthly officetel rents across the country have been on the rise for 9 months since June last year. The officetel monthly rent index also increased to 100.14 compared to the previous month (100.07). The national officetel monthly rent increase rate also continues to rise. In Seoul, the increase in officetel monthly rent in February was 0.20%, more than twice that in January (0.09%). The southeastern region, which includes the 3 districts of Gangnam, rose the most at 0.31%, and the southwestern region rose 0.20%. The increase in monthly rents has expanded, mainly in areas near subway stations where residential convenience is high, and the increase in monthly rents continues to increase as supply continues to be insufficient compared to demand, especially in the southeastern region.
Unlike the monthly rent increase, officetel sales prices continue to fall. The officetel sales price decreased by 0.15% compared to the previous month. It has continued to decline for 20 consecutive months since July 2022. Officetel sales prices are continuing to decline in all regions, including Seoul (-0.07%), the metropolitan area (-0.13%), and provincial areas (-0.20%). As instability in the officetel market increases due to rising interest rates, a shrinking housing market, and an increase in officetel auctions, investment demand is shrinking, leading to a continued decline. The officetel sales market is expected to have difficulty recovering in the short term. Although the monthly rent has increased, it has only increased slightly compared to the interest rate, and there is no significant difference in the interest rate compared to the return on investment, so the investment attractiveness is not high.