- Songpa Living Area and Gateway Location of 3rd Phase Gyosan New Town See Rapid Increase in Population and Commercial Sales Trends
- High Attraction and Stable Rental Yield Expected from First Knowledge Industry Center Commercial Facility in Gam-il District
Commercial facilities in areas with increasing populations have been found to be highly advantageous for revitalizing commercial districts. These commercial facilities in such regions still lack complete living infrastructure, offering great potential compared to the initial investment, and when the population surges in the future, they can secure abundant fixed demand, attracting significant attention from investors.
In fact, commercial facilities in areas with growing populations have shown an increase in sales scale trends and average sales per store, indicating overall market growth.
According to KB Real Estate LiveOn's commercial district analysis data, the monthly sales scale trend of the commercial district in Gam-il District, which is part of the Songpa living area and the gateway location of the 3rd phase Gyosan New Town, was 360 million KRW as of March this year. This is a 300% increase of 270 million KRW over one year from 90 million KRW in March last year. The average monthly sales per store also rose, recording 39.5 million KRW in March, up 22.3 million KRW or 129% from 17.2 million KRW in March last year.
The industry analyzes that the concentration of population centered around Gam-il District has secured fixed demand, leading to the revitalization of the commercial district. According to Statistics Korea, the population in the Gam-il-dong area, where Gam-il District is located, was 7,560 in April but increased by about 1,000 to 8,696 in May, just one month later.
Especially in Gam-il District, as residential complex development is nearing completion, the population continues to increase, and commercial facilities are securing fixed demand. Additionally, the geographical advantage of being adjacent to the 3rd phase new town, Gyosan New Town, has allowed it to occupy a more favorable position for commercial district revitalization.
An industry expert stated, “Even at this point where transportation and infrastructure expansion are not fully completed, the revenue realization from commercial district sales is exceeding expectations. Once the development of Gyosan New Town, the 3rd phase new town, is completed, the value of commercial facilities will undoubtedly rise sharply, so the value of commercial facilities supplied in Gam-il District will surge.”
- The first knowledge industry center commercial facility scheduled for sale in June
In June, the first knowledge industry center commercial facility, which has not been previously supplied in Gam-il District, is scheduled for sale, drawing even more attention. The protagonist is the ‘Hyundai Terra Tower Gam-il Commercial Facility,’ the first knowledge industry center commercial facility introduced by Hyundai Engineering.
‘Hyundai Terra Tower Gam-il Commercial Facility’ is supplied in the core location of Gam-il District, which has a low ratio of commercial and neighborhood living facility land (around 3%), and is composed of a commercial facility ratio in the 8% range, which is lower than the average commercial facility ratio (about 15.5%) of the nearby Munjeong-dong knowledge industry center, boasting high rarity.
Moreover, as the first knowledge industry center commercial facility supplied in Gam-il District and located on a main road, it is expected to attract fixed demand from tenant companies and many floating populations based on securing the hinterland demand and excellent visibility.
In fact, ‘Hyundai Terra Tower Gam-il Commercial Facility’ is located on a main road connected to Gam-il Sunhwan-ro and Sinwoo-sil-ro, the key roads in Gam-il District, boasting optimal visibility that is easily noticeable to drivers and pedestrians. Additionally, it includes rest facilities such as an open lounge (1st floor) and a sunken garden (basement 1st floor), significantly increasing the dwell time of visitors to the commercial facilities by securing floating population as customers.
Securing fixed demand is also anticipated. ‘Hyundai Terra Tower Gam-il Commercial Facility’ is expected to secure fixed demand not only from tenant companies in the knowledge industry center but also from approximately 2,200 residential units about 300 meters away from the site, as well as demand from parks, cultural complex facilities, religious facilities, and the entire Gam-il District’s hinterland demand of about 14,000 apartment units.
That is not all. ‘Hyundai Terra Tower Gam-il Commercial Facility’ is adjacent to an office town site of about 19,000 square meters where numerous small-scale company buildings are additionally planned to be supplied, making it the optimal 7-day-a-week commercial facility in Gam-il District that can simultaneously secure business and residential demand.
Furthermore, due to its geographical advantage of being located on a main road and excellent transportation convenience, it is expected to secure demand not only within Gam-il District but also from the floating population traveling to and from Gam-il District.
Near ‘Hyundai Terra Tower Gam-il Commercial Facility,’ the planned Gam-il Station, an extension connecting to Line 3’s Ogeum Station, is scheduled to be built within Gam-il District, increasing the likelihood of securing additional demand traveling between Jamsil, Munjeong, Wirye, and Gyosan. Also, with easy access to the Seoul Ring Expressway (Seo Hanam IC), Jungbu Expressway (Hanam IC), Seoul-Sejong Expressway (scheduled to open in 2024), and the Hanam Gam-il District?Wirye New Town connecting road, securing a large floating population using these wide-area transportation networks is also expected.
Since there has been no supply of knowledge industry center commercial facilities in Gam-il District so far, and this commercial facility can secure both business and residential demand at once, the value of ‘Hyundai Terra Tower Gam-il Commercial Facility’ is expected to grow even more.
Hyundai Engineering’s ‘Hyundai Terra Tower Gam-il Commercial Facility,’ the first knowledge industry center commercial facility in Gam-il District, is scheduled for sale in June, and the promotional center is located at Room 201, 2nd floor, Hongil Building, 1164 Yangjae-daero, Songpa-gu, Seoul (Olympic Park Intersection).
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
