Report Calls for Use of Officetels as Housing Policy Tool for Single-person Households

An officetel building in western Seoul. (Yonhap)

SEOUL, March 4 (Korea Bizwire) — With South Korea entering the age of 1 million “officetels” — multi-purpose buildings with residential and commercial units — it’s becoming more imperative to use them as a housing policy tool for single-person households, a report said Thursday.

The Construction and Economy Research Institute of Korea (CERIK) said in a report released that the number of officetels grew on the back of demand from young single-member households, and they played the function of private rental homes.

The report stressed that to better cope with the COVID-19 pandemic and the surging demand from one-person households, efforts should be made to enhance the recognition of officetels as well as to promote their active use.

According to the CERIK, there were 942,000 officetel units in South Korea as of the first half of last year.

Among the nation’s officetels, the share of those registered as private rental houses last year stood at about 40 percent. They served as private rental houses mainly for single and two-person households.

“The 2020 Korea Housing Survey showed that single-person households accounted for 73.4 percent among those who reside in officetels, with the share of those younger than 40 reaching 77.4 percent,” said Huh Yoon-kyung, a researcher at CERIK.

“This proves that officetels are highly preferred by single-person households and younger inhabitants.”

J. S. Shin (js_shin@koreabizwire.com)