The Era of Polarization Arrives Where Knowledge Industry Centers Are 'Chosen' Depending on the Region

－ More than half of the nationwide knowledge industry centers are concentrated in Seoul and Gyeonggi, but some areas show supply scarcity
－ In the first half of the year, knowledge industry centers' real demand and investment demand are expected to diverge based on scarcity, location, and accessibility

The knowledge industry centers (formerly apartment-style factories), once considered prime real estate products, are expected to see mixed fortunes depending on the ‘choices’ of demanders and investors.

Despite the government’s comprehensive regulatory tightening cooling investment sentiment and the emergence of oversupply, demanders and investors are likely to shift towards knowledge industry centers that have scarcity, excellent location conditions, and stable operating income by securing high-quality tenants. In particular, for core area knowledge industry centers, with few market listings, actual demand is expected to gather, fueling a rise in transaction prices.

Accordingly, demand and investment in knowledge industry centers are poised to polarize depending on supply. According to a review by real estate research firm Realtoday of the nationwide knowledge industry center status (including registration and approval) as of the end of April from the Korea Industrial Complex Corporation, the supply share of knowledge industry centers is high in Seoul (30.7%) and Gyeonggi Province (43.5%).

In Seoul, among 359 knowledge industry centers, more than half are distributed in Guro-gu (47) and Geumcheon-gu (143), where the national industrial complexes Guro Digital Complex and Gasan Digital Complex are located. The remaining centers are located in Yeongdeungpo-gu (28), Seongdong-gu (81), Gangseo-gu (18), and other areas with extensive semi-industrial zones.

In Gyeonggi Province, there are a total of 508 knowledge industry centers, concentrated in Siheung (93), Bucheon (60), Seongnam (46), Hwaseong (41), and Anyang (38). Especially in Gyeonggi, many knowledge industry centers were supplied as self-sufficient facilities during the development of housing sites such as Namyangju Dasan New Town and Hwaseong Dongtan.

As supply concentrates in specific areas, some regions with unfavorable location conditions are expected to face difficulties in securing tenants. With polarization already evident due to transportation and location conditions, concerns about localized oversupply are growing, making it necessary for demanders and investors to carefully select high-quality knowledge industry centers.

A Realtoday official explained, “An increase in supply initially absorbs the increased demand, but when oversupply occurs, prices of complexes that were purchased at high prices decline, and competitiveness in relatively unfavorable locations drops, leading to vacancy risks. Investment forms that focus on areas with price merits or transportation convenience centered around subway stations and surrounding amenities, similar to other real estate locations, will expand to enhance asset value.”

Therefore, in the first half of this year, knowledge industry centers are expected to see a divergence in ‘choices’ by actual and investment demand depending on △supply scarcity △subway station proximity △accessibility to business districts.

Hyundai Engineering plans to launch its first knowledge industry center, ‘Hyundai Terra Tower Gam-il,’ in the Gam-il district of the Songpa living area adjacent to Songpa-gu in June. This complex, supplied about five years after the nearby Munjeong-dong knowledge industry center, will be located on Block 4 of the Gam-il district’s self-sufficient facility land, consisting of basement 4 floors to ground 8 floors, with a total floor area of approximately 57,000 square meters, including knowledge industry centers, neighborhood living facilities, and sports facilities. The planned Gam-il Station on Subway Line 3 will be within walking distance, and it boasts excellent transportation convenience being close to Seo Hanam IC and Hanam IC. The knowledge industry center will feature specialized designs enhancing work convenience, such as an open lounge in the main lobby for tenant visitor meetings, a sunken garden (basement 1), rooftop garden, parking spaces twice the legal standard, and high floor heights (4.5~5 meters). Commercial facilities will be located along the main road, with a lower commercial facility ratio (8.25%) compared to the average (15.5%) of knowledge industry centers supplied in nearby Munjeong-dong, ensuring steady demand from tenant companies and smooth demand from the nearby approximately 19,000 square meter office town site.

Hyundai Engineering is also supplying a knowledge industry center in Yeongtong-gu, Suwon City. ‘Hyundai Terra Tower Yeongtong,’ located at 15, Sinwon-ro 250beon-gil, Yeongtong-gu, Suwon-si, Gyeonggi-do, will be developed with three buildings from basement 2 floors to ground 15 floors, totaling approximately 96,946 square meters. Located near Samsung Digital City, synergy effects with various companies are expected. It is conveniently accessible by public transportation near Yeongtong Station on the Bundang Line, and transportation conditions are expected to improve further with the opening of the Indeokwon-Dongtan double-track railway Wontheon Station in 2026.

In Uijeongbu City, which has only one knowledge industry center, sales are underway. Seoul Architecture PCM Construction is selling ‘Uijeongbu Centum Square,’ built on Block 2-4 of the self-sufficient land in the Gosan district of Uijeongbu City. The complex will consist of basement 2 floors to ground 10 floors, with a total floor area of approximately 42,000 square meters, including knowledge industry centers, commercial facilities, and officetels. Located near Minrak IC on the Sejong-Pocheon Expressway (Guri-Pocheon), this complex is expected to enable quick access to the Seoul area with the confirmed extension project of Line 7 to Tapseok Station.

After a lull in supply since 2011, Yangju City is resuming supply. Seungyun General Construction is selling ‘Hangang Yangju Okjeong Duclass,’ built on lots 987-1 and 2 in Okjeong-dong, Yangju City. The complex will have basement 2 floors to ground 5 floors, with a total floor area of approximately 75,000 square meters, including knowledge industry centers, office facilities, and commercial facilities. Once the planned extension of Subway Line 7 to Okjeong Station is completed, it will be possible to travel to the Gangnam area without transfers. Future benefits are expected from the development of four industrial complexes and the Yangju Techno Valley (scheduled to start construction in 2022).

In Guri City, which has one registered and operating knowledge industry center, sales are also underway. Geumgang Housing is selling ‘Guri Galmae Geumgang Penterium IX Tower,’ built on lot 552-12 in Galmae-dong, Guri City. The complex will consist of basement 3 floors to ground 10 floors, with a total floor area of approximately 173,000 square meters, including knowledge industry centers, officetels, commercial facilities, and support facilities. Industrial connectivity is expected to improve due to nearby industrial complex development. Nearby are Jinkwan General Industrial Complex and Geumgok Ilsan Complex, and future office synergy effects are anticipated from the development of several industrial complexes.

Section office supply is also underway. In Goyang City, Gyeonggi Province, which is planned to be developed as a large-scale emerging business district along with the development of Changneung New Town, ‘Wonheung Station Classia The First’ section office will be supplied on Block 5-2 of Samsong District. ‘Wonheung Station Classia The First’ is located at 632-1, Wonheung-dong, Deogyang-gu, Goyang-si, Gyeonggi-do, on Block 5-2 of Samsong District, consisting of 640 office units and neighborhood living facilities from basement 6 floors to ground 19 floors. It is an ultra-station area office facility about 100 meters from Wonheung Station on Line 3, offering excellent access to Seoul.

SD Partners (developer) is selling ‘Songdo Sea Walk Interas Halla’ within the Songdo International Business District. The complex consists of ultra-small section offices with exclusive areas of 21 to 36 square meters, from basement 4 floors to ground 25 floors. Floors 1 to 4 will house the sales facility ‘Songdo Broad Square,’ with the 3rd floor including cultural and assembly facilities, and the 4th floor including a medical center. Floors 5 to 25 will be office facilities, with section offices comparable in size to small officetels, as well as shared facilities such as conference rooms and meeting rooms. It is close to Exit 5 of International Business District Station on Incheon Subway Line 1.