The reduction in the supply of officetels continues, showing a sharp decrease to one-third of this year's level next year.
According to Real Estate R114 on the 18th, the number of officetel units scheduled for occupancy next year is estimated to be 11,994. This figure represents a 64.1% decrease from this year's scheduled occupancy (33,461 units). Compared to 2019, when the number of units scheduled for occupancy was the highest in the past decade (110,211 units), it is one-tenth.
By year, the occupancy of officetels nationwide has rapidly decreased from 110,211 units in 2019 to 97,732 units in 2020, 77,726 units in 2021, 54,418 units in 2022, 56,457 units in 2023, and 33,839 units in 2024.
Regionally, the number of officetel units expected to be occupied in Seoul next year is projected to be 1,417, a decrease of 68.2% from this year (4,456 units).
The decrease is even greater outside of Seoul. In Incheon, 8,084 units are expected to be occupied this year, but the occupancy next year is only 1,860 units (down 77.0%). Gyeonggi Province is expected to drop from 13,420 units this year to 4,503 units next year, a decrease of 66.4%.
Gwangju has seen a continuous supply of officetels over the past decade, including this year. However, there are no units scheduled for occupancy next year. Daejeon is also expected to see 1,332 units occupied this year, but only 60 units (down 95.5%) next year. Gyeongnam is projected to decrease from 629 units this year to 44 units next year, a drop of 93.0%.
Gangwon, North Gyeongsang, and North Chungcheong Provinces also have no units scheduled for occupancy next year, while Sejong has none for both this year and next year.
Baek Sae-rom, a researcher at Real Estate R114's research lab, noted, 'Real estate for investment purposes reflects market sentiment more quickly,' adding, 'As the market is poor, the supply shrinks and the number of units decreases sharply.'