A plan is moving forward to build 244 officetel units — studio-to-apartment-style units used as either a home or an office — on the site of the CBS broadcasting headquarters in Mokdong, Yangcheon District, Seoul. The revision changes an earlier plan centered on a knowledge industry center for broadcasting and media firms, adding officetels and senior housing to the development. The push follows the strong subscription turnout for Mokdong Yunseul Xi, built on the former KT site in Mokdong, and comes as large residential officetels — known locally as "apartels" — are set for a major supply push in the greater Seoul area in the fourth quarter, drawing attention to how buyers will respond.
Seoul city government said on the 23rd that a revised detailed development plan for the district unit plan covering the CBS site around 917-1 Mokdong, Yangcheon District, is open for public review. The revision calls for adding 244 officetel units and 55 senior housing units.
Reflecting the city's push to supply housing suited to single-person households and newlyweds, a substantial share of the units are expected to be small and mid-sized residential products of about 60 to 80 square meters of exclusive floor area. CBS plans to complete construction permit procedures within the next year and break ground. The 55 senior housing units will be supplied as long-term private rental housing subject to a 10-year mandatory rental period, and will apply the facility and operating standards of Seoul's "Senior Safe Housing" program.
CBS had originally planned to build a knowledge industry center housing broadcasting and media companies, along with neighborhood facilities, on the 6,730-square-meter site, creating a "new media startup hub." But as the slump in knowledge industry centers became entrenched over the past two to three years, the company shifted to a mixed-use development that retains media-related functions while adding officetels and senior housing, following preliminary negotiations with the city. Development density remains at existing levels, with a floor area ratio of about 800% and a maximum height of 170 meters.
In Mokdong, where CBS is located, demand for high-priced residential officetels has been growing. In the Mokdong Yunseul Xi subscription held on the 8th of this month, 3,788 applications were filed for 651 units, an average ratio of 5.8 to 1 and a high of 8.7 to 1. The complex consists of large units ranging from 114 to 203 square meters of exclusive floor area.
"Mokdong is a market with fixed demand from people determined to live in the area, whether for the school district or for jobs across the southwestern part of the city," an industry official said. "The fact that even the relatively less preferred lower floors sold out quickly means there is considerable owner-occupier demand that has been waiting for new residential products in Mokdong." The official added, "The CBS site adjoins the nearby Hyperion, so the location is good, and by the time it is completed, demand from households relocating for Mokdong rebuilding projects is likely to be high."
Officetels in prime locations in Seoul and the greater capital area are emerging as an alternative as apartment prices climb and lending rules tighten. Attention is turning to subscription results in particular because 5,666 units are scheduled to be offered across eight projects nationwide in the fourth quarter. Among them, Cheongna Ark One Prugio (987 units), Hillstate Seongnam Metroble (189 units) and The Sharp Osan Station Arc City (90 units) consist of large units of 74 to 136 square meters of exclusive floor area, and are expected to draw strong interest from owner-occupier buyers.
According to Real Estate R114, officetel sales transactions nationwide totaled 18,035 in the first half of this year, up 8.2% from the same period a year earlier. Transactions of officetels larger than 60 square meters of exclusive floor area rose 21.4% from the second half of last year. Prices have also been rising, led by larger units: the sales price index for officetels of more than 60 and up to 85 square meters rose for a second consecutive month after July. Units larger than 85 square meters have risen for 11 straight months after turning higher last October.
Industry watchers expect a selective recovery centered on large officetels in areas where apartment prices are burdensome and housing demand has been proven. They say the scarcity of new officetels with adequate living conditions will grow, helped by improvements in product quality such as larger usable floor space from installing windows on balconies under the government's easing of rules.
"Demand in the officetel market has recently been recovering around mid-sized and larger products where actual residence is possible," an industry official said. "With new supply also declining and the available inventory limited, there is a strong chance demand will flow selectively into new officetels with adequate living conditions."
