Base Interest Rate at 0.75%, Arrival of the Zero Interest Rate Era... The Era of Income-Generating Real Estate Has Also Begun!
Active Moves to Secure Prime Investment Spots Like 'Ocean Terrace Street'... Deadline Approaching
Ultimately, the era of a 0% base interest rate has arrived. The Bank of Korea held an emergency monetary policy meeting last month and implemented a ‘big cut’ by lowering the base interest rate by 0.5%. As a result, the base interest rate has now dropped to 0.75%, marking the lowest rate in history.
Consequently, various movements are being observed across the economy. Due to the unprecedented zero interest rate environment, the appeal of bank savings and deposit products has further diminished, leading to an increase in demand from investors looking to reorganize their asset portfolios.
Generally, in a low interest rate environment, funds tend to move toward safe assets such as real estate or gold. Until now, the most secure place was none other than ‘houses.’ However, recent trends differ somewhat. As the government has strengthened various regulations on the housing market, it has become less attractive as an investment destination for anyone other than actual homebuyers.
Instead, funds are expected to concentrate on income-generating real estate such as commercial properties. These are relatively free from regulations and, if carefully selected, can provide steady monthly rental income, making them an optimal option for retirement planning that can replace a salary. However, given the market’s instability, it is essential to identify prime commercial properties that are guaranteed to become the core of the local commercial district.
Among the recently available properties, ‘Ocean Terrace Street’ in Millak-dong, Suyeong-gu, Busan, is considered a prime commercial property.
‘Ocean Terrace Street’ was completed in January 2020, allowing immediate income generation after contract signing. This contrasts with pre-sale commercial properties, which typically require at least 1 to 2 years until completion and may take several years for the commercial district to form, resulting in a long wait before generating returns.
Additionally, as it is developed under the ‘ePyeonhansesang’ brand, it is expected to enjoy excellent customer acquisition effects.
It also boasts abundant captive demand and excellent design. The complex secures a fixed demand of approximately 3,600 households, including 1,038 residents in the immediate vicinity and nearby apartment complexes. Furthermore, it is located near tourist attractions that consistently attract visitors year-round.
‘Ocean Terrace Street’ is situated near Gwangalli Beach, one of Busan’s hottest spots. The Gwangalli Beach and Gwangandaegyo Bridge area hosts the ‘Busan Fireworks Festival,’ one of the world’s best fireworks festivals attended by over one million people annually. With excellent natural surroundings and various cultural events, tourists visit throughout all four seasons. The project site is also close to Millak Waterfront Park and Galmaetgil Trail Course 2, securing additional visitor demand and promising high returns.
Moreover, it features a street-type themed design rarely seen in the area, expected to develop into a landmark commercial property. In particular, it offers a large-scale, fully open frontage of up to 380 meters, maximizing views of Gwangandaegyo Bridge. The environment inside the commercial facilities also maintains excellent views of the sea and bridge, encouraging longer stays and enjoyment, which is expected to enhance commercial facility operating profits.
The spatial composition is also distinctive. It is planned as a complex space with three themed zones: Life Style Zone for passersby and nearby residents, Retail & Casual Brand Zone adjacent to the waterfront park, and the main commercial district with views of Gwangandaegyo Bridge, called the Anchor & Local Brand Zone, where culture and relaxation can be enjoyed.
Especially, the main commercial district’s three blocks, adjacent to the waterfront park and offering views of Gwangandaegyo Bridge, are composed as the Anchor & Local Brand Zone, which is expected to lead to rapid commercial district activation and stable profitability.
‘Ocean Terrace Street’ consists of 49 units on the first floor above ground, with a total floor area of 5,029.31㎡ (1,521.37 pyeong). All units in the first block have been sold, and preemptive designated contracts are currently underway for the third and fourth blocks. Contract terms are 10% down payment and 90% balance. There have been continuous inquiries from well-known F&B brands regarding tenancy, and if desired, leasing services for preferred brands are also provided to buyers.
The sales promotion center is located at 111, 4th Complex, ePyeonhansesang Ocean Terrace, 31, Gwanganhaebyeon-ro 326beon-gil, Suyeong-gu, Busan.
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