- Stable demand expected from knowledge industry center tenants and nearby apartment residents for residential and business needs
- Scarcity ensured by low commercial and neighborhood facility land ratios, with visibility secured on main roads
As underlying demand emerges as a key point for successful investment, commercial facilities with abundant underlying demand are gaining attention.
In the case of income-generating real estate, there are three representative successful investment strategies: profitability, stability, and liquidity. To explain, these refer to how much profit will be generated, how to maintain this profitability, and the potential for future cash conversion. However, for these commercial facility investment strategies to be realized, securing ‘demand’ must come first.
First, it is important to approach by thoroughly understanding whether there is underlying demand that can directly use the commercial facilities, whether accessibility from other areas is high, and whether additional liquidity increase can occur. Because the conditions for a thriving commercial district are demanding, commercial facilities in districts with already stable underlying demand are more popular than those in areas where new commercial districts are still forming and require time.
The more abundant the underlying demand a commercial facility has, the higher the profitability and the more stable the income can be maintained. For this reason, commercial facilities with solid underlying demand attract a lot of attention and have proven their internal and external value by selling out in a short period.
For example, commercial facilities supplied in Dongtan 2 New Town sold out quickly due to the location boasting about 5,000 households of underlying demand nearby. Similarly, another commercial facility sold in Ilsan Hallyu World also succeeded in selling out within five days of contract, as it secured solid underlying demand due to development within Hallyu World, attracting many investors.
A real estate expert stated, “If a commercial facility is located near large residential complexes and is equipped with an internal transportation network that allows movement throughout the residential complexes as well as a metropolitan transportation network for access to nearby areas, its investment value can be considered very excellent.”
- Hyundai Engineering’s ‘Hyundai Terra Tower Gam-il Commercial Facilities’
As underlying demand establishes itself as the main driver of successful commercial facility investment, Hyundai Engineering’s ‘Hyundai Terra Tower Gam-il Commercial Facilities,’ scheduled for sale in June, is attracting much attention.
This is because ‘Hyundai Terra Tower Gam-il Commercial Facilities’ have a low ratio of commercial and neighborhood living facility land (about 3%) and have stably secured abundant underlying and fixed demand.
This makes it more scarce than other commercial facilities. In fact, the Gam-il district where ‘Hyundai Terra Tower Gam-il Commercial Facilities’ are supplied has a low ratio of commercial and neighborhood living facility land (around 3%), allowing for stable income expectations when investing in commercial facilities.
‘Hyundai Terra Tower Gam-il Commercial Facilities’ are expected to stably secure fixed demand from tenant companies in the knowledge industry center, leveraging its geographical advantage adjacent to Songpa-gu, as well as underlying demand from about 2,200 apartment households, parks, cultural complex facilities, religious facilities located approximately 300 meters from the site, and about 14,000 apartment households in the Gam-il district.
In particular, ‘Hyundai Terra Tower Gam-il Commercial Facilities’ have secured a location at a gateway to apartment underlying demand and are connected to an approximately 19,000㎡ officetown site (planned) where numerous small-scale office buildings are additionally planned to be supplied. As a result, it is expected to absorb abundant demand 7 days a week and 365 days a year as a mixed residential and business commercial district, securing business demand on weekdays and residential demand on weekends.
Moreover, it is located in a hub position connecting Wirye New Town (about 44,000 households) and the 3rd New Town, Gyosan New Town (about 32,000 households), which is expected to secure abundant demand over a long period.
- Located on the main road of Gam-il district, securing optimal visibility
Additionally, thanks to its geographical feature of being located on a main road and the incorporation of various specialized designs, it is expected to continuously secure demand.
‘Hyundai Terra Tower Gam-il Commercial Facilities’ are located on a main road connected to Gam-il Sunhwan-ro and Sinwoosil-ro, key roads passing through Gam-il district, securing optimal visibility that is easily noticed by drivers and pedestrians. It is also situated at a gateway leading to the approximately 19,000㎡ officetown site where many small-scale office buildings are planned to be additionally supplied, making it easy to secure demand from employees of companies located there.
Furthermore, facilities such as an open lounge (1st floor above ground) and a sunken garden (1st basement floor) are provided, increasing the dwell time of the floating population as customers and positively influencing the activation of the commercial facilities.
‘Hyundai Terra Tower Gam-il Commercial Facilities’ are the first commercial facilities in the knowledge industry center entering the Gam-il district within the Songpa living area, and unlike other knowledge industry center commercial facilities, they have high scarcity due to a low commercial facility ratio (8.25%). Also, with only essential businesses attracted, the commercial district will be revitalized, and a spacious parking area accommodating 466 vehicles, which is 219% higher than the legal standard, will be provided, making it a leading commercial facility within the Gam-il district.
Hyundai Engineering’s ‘Hyundai Terra Tower Gam-il Commercial Facilities’ are 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).
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