Government Regulation's Reflex Benefit: 'Section Office' Emerges as a New Power in Income-Generating Real Estate

- 'DMC Starhub Plus' Introduces Small Section Offices Not Previously Available at Sangam DMC
- Demand for Customizable Area and Style Options Continues to Grow

Due to the government's continuous regulations, the supply of income-generating real estate such as section offices and officetels is gaining momentum, especially in the metropolitan area. Thanks to the benefits of government regulation backlash, more places are selling out within a short period, and buyers can also expect capital gains after purchase.

As a result, investors' interest is shifting toward income-generating real estate. Compared to apartments, these properties are relatively free from regulations and allow for broader use of loans.

In particular, section offices located in areas with high demand for small offices, such as Sangam DMC, are emerging as representative income-generating real estate. They are not subject to strong real estate regulations like the December 16 real estate measures, have high liquidity, and allow investment with small amounts, making the financial burden relatively low.

Section offices also have high future value. The demand for section offices is increasing as the number of small companies composed of one to two people grows. According to data from the Korea Financial Telecommunications & Clearings Institute's survey on one-person creative enterprises, the number of one-person companies increased by about 200,000 from 77,009 in 2013 to 271,375 in 2018.

A real estate expert said, "As news comes out about venture companies and startups selling their companies for billions of won, the movement to start small businesses continues steadily, increasing the demand for section offices," adding, "As the current government continues to introduce regulations to stabilize housing prices, investors looking for niche investment opportunities that can avoid regulations and offer high returns should pay attention to section offices."

Meanwhile, among income-generating real estate that has avoided government regulations, a prime section office enjoying a balloon effect is attracting attention with its sale.

‘DMC Star Hub Plus,’ a small section office located in Block 8-1 of Hyangdong District, Goyang (Hyangdong-dong, Deogyang-gu, Goyang-si), adjacent to Sangam DMC, is the main subject. This complex will have 363 small section office units ranging from 24 to 46㎡ and neighborhood living facilities, spanning from five basement floors to 15 above-ground floors.

DMC Star Hub Plus features customizable area and style configurations to meet the needs of tenants. This means there are no restrictions on business types, ensuring investment stability and liquidity. Moreover, to provide convenience and a pleasant working environment for resident companies, it is equipped with various specialized facilities such as conference rooms, multipurpose meeting rooms, hotel-style lounges and lobbies, phone booths, and healing sleeping rooms.

Additionally, the office floors have a generous ceiling height of up to 4.5 meters, securing excellent openness, enhancing operational efficiency, and allowing for diverse business choices and spatial arrangements. Due to its high space efficiency, it is expected to be highly preferred by companies for occupancy.

DMC Star Hub Plus also boasts nearby large-scale development benefits, raising expectations for future value. Following the public housing district designation announcement on the 6th, Changneung New Town, which will develop various self-sufficient facilities over an area 2.7 times larger than Pangyo Techno Valley 1st, including about 38,000 housing units, will begin full-scale development around the project site. Additionally, the Susaek Station area development project, which will create office spaces, cultural tourism facilities, and commercial facilities over approximately 220,000㎡, is also underway.

It also offers excellent transportation conditions, a core value of offices. It has superior accessibility to Seoul and metropolitan areas via roads such as Jayuro, Gangbyeonbuk-ro, Naebu Sunhwan-ro, Bukbu Ganseon-ro, and the Seoul Outer Ring Expressway, as well as public transportation. Furthermore, it is a double-station area within walking distance of the planned Goyang Line Hyangdong District Station and the planned Gyeongui-Jungang Line Hyangdong Station. Using the GTX-A line, scheduled to open in 2023, it will take 25 minutes to Yeouido or Yongsan and 30 minutes to Gangnam, further improving access to Seoul's central business districts.

DMC Star Hub Plus also offers a pleasant natural environment. It is surrounded by Hyangdongcheon Stream, Bongsan, Mangwolsan, and Eunhaengsan, allowing office workers to enjoy leisure activities such as walking and exercising during lunch breaks or after work. In particular, the urban forest is expected to be the best business space that can enhance employee satisfaction and work efficiency for resident companies.

A sales official said, "While apartments are slowing down due to government regulations, small section offices that can be invested in with relatively small amounts are attracting investors' attention," adding, "DMC Star Hub Plus is a small section office that did not exist in the oversupplied Sangam DMC, giving it rarity, and since it is subject to building law rather than loan regulations, inquiries from investors continue even after the model house opened, so we expect good results."

The DMC Star Hub Plus model house is located at 634-2,3 Wonheung-dong, Deogyang-gu, Goyang-si.