Seoul Officetel Market Shows Resilience with Price Increases, Metropolitan Areas Rebound

Seoul’s officetel market continues to demonstrate strength, with sales prices rising for the 13th consecutive month as of February 2026, according to KB Real Estate. This growth is driven by residential demand seeking alternatives to traditional apartments, particularly in larger officetel units. Simultaneously, five major metropolitan cities are experiencing a turnaround, marking the first price increases in 43 months.

Seoul Officetel Price Trends

The overall increase in Seoul officetel sales prices for February was 0.06%. A breakdown by size reveals varying trends:

• Large Officetels (over 85㎡): Experienced the highest increase at 0.30%.
• Medium-Large Officetels (60㎡ ~ 85㎡): Rose by 0.15%.
• Medium-Sized Officetels (40㎡ ~ 60㎡): Increased by 0.14%.
• Small Officetels (30㎡ ~ 40㎡): Remained flat (0.00%).
• Ultra-Small Officetels (under 30㎡): Decreased by -0.10%.

KB Real Estate attributes the continued price strength to the influx of residential demand shifting away from apartments.

Metropolitan Area Rebound

Beyond Seoul, officetel sales prices in five key metropolitan cities – Daejeon, Daegu, Busan, Gwangju and Ulsan – rose by 0.06% in February. This marks the first upward trend in these areas in 43 months.

National Averages

As of last month, the average officetel sales price nationwide was 262.93 million won. Prices were higher in the metropolitan area at 272.94 million won, and even higher in Seoul at 307.8 million won. Gyeonggi Province averaged 262.32 million won, while Incheon stood at 165.98 million won. The five metropolitan cities averaged 196.12 million won.

Gangnam Market Dynamics

Recent reports indicate a shift in the Gangnam real estate market. While traditionally strong, Gangnam District apartment prices experienced a slight decline of 0.06% in February 2026, the first decrease in 100 weeks . Seocho and Songpa districts too saw declines of 0.02% and 0.03% respectively. This adjustment is anticipated to potentially spread across Seoul as capital gains tax deferral expiration approaches in May.

Challenges in Rental Market

The Seoul real estate rental market is facing challenges, with a decrease in both deposit-based leases and monthly rent sales. As of February 22, 2026, the number of deposit-based apartment leases in Seoul fell 17.6% to 19,010, down from 23,060 in January. Monthly rent sales also decreased by 18%, from 21,364 to 17,527 cases . This scarcity is leading some landlords to seek additional “option fees” or cash payments from tenants, even during lease renewals.