There is a growing interest in real estate investment on the island. Many believe that studio apartments are an excellent option for rental income. But experts say investors should be cautious. Mike Balfour reports.
Construction of a studio apartment is underway in Jeju City.

All of the apartment units were sold even before completion. Over 40 people competed for each unit.


34 studio apartment complexes received construction approval from the province in 2014.
35 were approved last year and 30 so far this year.


As an investment, one room apartments are usually more attainable in terms of pricing.

Smaller sized dwellings are in demand and rental returns are relatively high.

Sync
Representative, Studio apartment office
Investors are seeking places to put their money as bank interest rates are low. They believe studio apartments continue to be in high demand.
<씽크: ○○ 분양사무실 관계자>
"자금이 은행 금리도 그렇고 따로 투자할 곳도 없고 수요는 계속 있다고 보고 투자하는 것 같아요.

Especially in Jeju, the investment / income ratio is higher than any other cities in the nation as the island population is growing.

Meanwhile, there are fewer real estate transactions for large units.

INTERVIEW
Yang In-sik / Real estate agent
Studio apartments are in high demand, and they are popular with investors. When a contractor looks for investors, all of the units are gone in a day, as they generate a relatively high return on investment, compared to elsewhere in the nation.
<인터뷰 : 양인식/공인중개사>
"오피스텔 수요층이 대기해 있어요. 부동산마다 대기해 있어서 물량이 나오면
하루면 다 나가요. 공급이 따라가지 못하니까 아직까지 제주는 오피스텔에 대한 투자 수익률이 (다른 지역만큼) 내려가고 있지는 않아요."

[camera]
Kim Seung-cheol

[REPORTER]
Mike Balfour

Investors believe that one room apartments are excellent investment options.

However, experts advise that potential investors should be cautious before putting money into studio apartments because prices of small apartments are increasing. The investment / income ratio could be lower. They should investigate whether their investment would deliver strong rental and capital growth in the future.

Mike Balfour KCTV