What is the officetel?
In South Korea, an officetel (Korean: 오피스텔, a portmanteau of ‘office’ and ‘hotel’), is a multi-purpose building with residential and commercial units. This is a type of studio apartment or studio flat.
An officetel is designed to be a partially self-contained building, such that its occupants can live and work in the same building, minimizing commute time. Because of the convenience of having daily routines located in one building, a significant proportion of the officetel’s inhabitants include lawyers, accountants, tax accountants, professors, and artists. Office space is usually parceled out or leased to trading companies and small- to medium-sized businesses.
Officetels are mainly found downtown or around major transportation hubs. As the scale of construction grows over time, officetels tend to offer more commercial and housing features through amenities like sports centers and shopping facilities. After the Asian financial crisis of 1997, the construction of officetels has increased rapidly due to governmental deregulations, and they are now taking a substantial portion of the housing market in the Seoul Metropolitan Area.
Officetel parcels are commonly 50 to 100 m² in size. Most officetel residential spaces are a studio apartment with bathroom, kitchen, and bed areas. Basic furnishings are usually included with an officetel lease. It is currently illegal to have an Ondol tub or balcony heating systems in an officetel.
The first officetel was built in Mapo, Seoul by the Korea Development Corporation in 1985. After that, demand increased, so construction companies and housing cooperations took part in the growing the trend of building officetels.
Features of Officetel apartment
To understand more about the apartment Officetel is also need to learn about the advantages and disadvantages that this type of apartment.
- As mentioned above, the area of Officetel Apartments is not large, so the price is cheaper than the normal apartments.
- There is a separate entrance and elevator lobby, convenient for companies.
- There is a separate reception area as well as the possibility of hanging the company’s name in the reception area.
- Can use the address of the apartment to register for business license, the license to open office, etc.
- Use comfortably facilities in buildings and residential areas.
- There are many functions such as office, housing …
- Have higher interest rates than other types of apartments.
- Small area should be suitable for small office or small family.
- The usage length is only 50 years old, after this period, owners must apply for extension.
- Management costs are higher than normal apartments.
- Not a place of residence, this mean the apartment cannot be registered for permanent residency but only temporary residency.