2011 construction permits for "officetels" surged, mirroring their popularity (increased by 2.3 times year-on-year)
- Construction commencements increased by 2.9 times, construction completions by 2.4 times -
In relation to the number of construction permits issued on, and the construction commencements and completions of "officetels" (a combination of office and hotel, a Korean-style housing designed to serve both purposes) in 2011, the Ministry of Land, Transport and Maritime Affairs (Minister: Do-youp Kwon) announced that it found the following results:
Compared to 2010, the year 2011 saw a huge increase in all three categories; 1) construction permits issued on officetels last year were 1,219 buildings whose total floor area stood at 2,937,444㎡ (increased by 2.3 times year-on-year); 2) construction commencements were 929 buildings whose total floor area was 2,304,708㎡ (increased by 2.9 times year-on-year) and; 3) construction completions were 347 buildings whose total floor area was 662,110㎡ (increased by 2.3 times year-on-year with the wider capital area having 9,208 household units).
*Officetels status review in 2010
- Construction permits: 431 buildings whose total floor area was 1,255,641㎡
- Construction commencements: 293 buildings whose total floor area was 791,851㎡
- Construction completions: 150 buildings whose total floor area was 341,948㎡ with 7,521 household units (6,014 units in the wider capital area)
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< Construction standards of officetels > |
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ㅇ Definition: mainly used as an office space, but some sections of the area are allowed to function as accommodations and cooking facilities. ㅇ Construction standards - Balconies are not allowed to be installed at any office space sections - In the event of intending the officetel to serve multi-purposes (those buildings whose total floor area is no more than 3,000㎡ are excluded), an officetel-only entrance should be built. - In the case where the office section's total floor area exceeds 85㎡, floor heating systems such as heated rocks, heated rocks using hot water, or electric heating appliances are not allowed to be installed. |
To start with, the number of construction permits had been increasing slightly till 2010, but in 2011 it surged by a wide margin to be issued on 434 buildings whose total floor area was 940,553㎡ in the fourth quarter of 2011, more than twice of an increase compared to 2010.
*Construction permits issued in the fourth quarter of 2010: 132 buildings whose total floor area was 455,804㎡.
It was found that the new permits for officetels were concentrated on major cities. The wider capital area accounted for 54% of the total at 1,592,368㎡ total floor area (704,949㎡ in Gyeonggi, 508,035㎡ in Seoul, and 379,384㎡ in Incheon), followed by Busan (530,684㎡, 18.1%) and Daejeon (202,240㎡, 6.9%).
< Status of the construction permits for officetels of each region >
|
Title |
2011 |
2010 |
Rate of increase/decrease year-on-year | |||
|
# of buildings |
Total floor area |
# of buildings |
Total floor area |
# of buildings |
Total floor area | |
|
Nationwide |
1,219 |
2,937,444 |
431 |
1,255,641 |
283% |
234% |
|
Wider capital area |
470 |
1,592,368 |
209 |
786,242 |
225% |
203% |
|
Seoul |
214 |
508,035 |
108 |
395,820 |
198% |
128% |
|
Incheon |
94 |
379,384 |
38 |
89,484 |
247% |
424% |
|
Gyeonggi |
162 |
704,949 |
63 |
300,938 |
257% |
234% |
|
Regional total |
749 |
1,345,076 |
222 |
469,400 |
337% |
287% |
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Broader city area |
526 |
872,113 |
131 |
282,866 |
402% |
308% |
|
Other regions |
223 |
472,963 |
91 |
186,534 |
245% |
254% |
Construction commencements also saw another large, threefold increase from 2010 in terms of the total floor area. The wider capital area took up 63% of the increase at 1,451,725㎡ total floor area (662,918㎡ in Gyeonggi, 488,560㎡ in Seoul, and 300,247㎡ in Incheon), with Busan in the second place (406,084㎡, 17.6%) followed by Daejeon (84,549㎡, 3.7%).
*Construction commencements for 2010: 293 buildings whose total floor area was 791,851㎡.
A twofold increase was witnessed in the number of construction completions of officetels in comparison to 2010.
*Construction completions of officetels in 2010: 150 buildings whose total floor area was 341,948㎡ with 7,521 household units (6,014 units in the wider capital area).
When analyzed by their sizes, the total floor space category of less than 40㎡ stood at 8,161 units, 40~60㎡ at 3,499 units, 60~85㎡ at 1,388 units, and more than 85㎡ at 1,248 units. It was noted that small-sized officetels with less than 40㎡ increased by 2.5 times year-on-year.
Factors that triggered such a wide increase on all three categories are considered to be related to; 1) an increased interest in the officetels for housing purposes following the announcement of the August 18 House Lease Policies in 2011 and; 2) the growing popularity of small-sized housings commensurate with the increase of one- or two-person(s) households. This trend is expected to continue in 2012 as well.
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< August 18 House Lease Policies in 2011 (in relation to officetels) > 1. Officetels for housing purposes are allowed to be registered as leasable houses and are entitled to the same level of tax benefits as leasable houses. 2. More portions of the National Housing Fund to be appropriated to the construction assistance funds for officetels. |