On April 9th, the Bank of Korea lowered the base interest rate to an all-time low of 0.75%, increasing the likelihood that liquidity in the real estate market will flow into income-generating real estate. While the Bank of Korea is monitoring the impact of fiscal, financial, and monetary policies related to COVID-19 on the market and the real economy and has expressed intentions to further reduce the rate by 0.25%, a professor formerly serving as a financial commissioner at the Bank of Korea stated that additional rate cuts are necessary and even predicted negative interest rates.
Along with this interest rate situation, recent increases in market liquidity through land compensation and government fiscal policies have made preparing for retirement through monthly rental income a trend among asset holders. In particular, as regulations on residential real estate such as apartments have tightened, interest in officetels, income-generating real estate with abundant development prospects, has grown as an alternative investment asset.
In this regard, it was reported that the first phase of officetel sales at G Valley Mind, an officetel/urban residential housing complex under construction on Siheung-daero in Gwanak-gu, Seoul, has sold out, and the second phase is scheduled. The second phase of G Valley Mind officetels consists entirely of duplex units equipped with high-end features such as stylers and sliding doors, gaining great popularity among investors and actual residents.
G Valley Mind Phase 2 is located about a 3-minute walk from Guro Digital Complex Station on Line 2 and is situated within the Seoul Digital Industrial Complex G Valley, the forefront of South Korea's IT industry. It is designed as a comfortable residential space targeting nearby office workers and newlywed couples within G Valley.
The area surrounding G Valley Mind is equipped with various infrastructures that meet the needs of not only newlywed couples but also single- and two-person households. E-Mart, Nonghyup Hanaro Mart, and the food-specialized cultural street KkalKkal Meokja Street are accessible on foot. It is adjacent to Dorimcheon-gil Park, about 200 meters away, and nearby are Boramae Park, Boramae Hospital, Guro Hospital, Hyundai Outlet, Lotte Cinema located in the fashion outlet street, Guro AK Department Store, CGV, Lotte Hotel, Sheraton Hotel, as well as numerous banks and private clinics, enabling convenient living.
The location where G Valley Mind Phase 2 is being built has seen no officetel supply since September 2017, making it an opportunity to satisfy the pent-up demand of waiting buyers. Additionally, G Valley Mind Phase 2 is about 3 minutes from Guro Digital Complex Station on Line 2, which offers excellent access to Gangnam and will enjoy a "double station area" premium with the opening of the Sinansan Line scheduled for 2024.
The Sinansan Line is a 44.6 km railway line connecting Ansan, Yeouido, and Seoul Station. Upon completion, it is expected to take about 25 minutes from Ansan to Yeouido. From G Valley Mind Phase 2 near Guro Digital Complex Station, passengers can quickly reach Gwangmyeong Station, where KTX trains pass, and Yeouido without transfers, which was previously difficult to access directly.
Moreover, access to Siheung-daero, Nambu Beltway, Seobu Expressway, and Siheung I.C is convenient. Around 2021, when the [Seobu Expressway Underground Project], which directly connects Seobu Expressway and Siheung-daero, is completed, accessibility through the metropolitan transportation network is expected to improve further.
With the implementation of the price ceiling system for pre-sale prices, the value of residential officetels as alternatives to small apartments is rising. G Valley Mind Phase 2, which boasts a double station area, abundant living infrastructure, and future value, has various premiums that minimize vacancy concerns, making its value stand out even more. The G Valley Mind Phase 2 sales office is located near exits 1 and 2 of Guro Digital Complex Station in Digital-ro, Guro-gu, Seoul, and consultations are available immediately upon reservation and visit.
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