'Dormitory in "Regulation Free" Knowledge Industry Center Draws Attention'

As the government’s strengthened real estate regulations focus on the apartment market, income-generating real estate that has escaped these regulations is gaining popularity. Recently, knowledge industry centers have emerged as new investment destinations alongside officetels and commercial buildings, with dormitories within these centers standing out by achieving full sales.

In fact, dormitories within knowledge industry centers have shown high popularity with consecutive cases of full sales. In March 2019, the dormitories in the ‘IS Biz Tower Central’ knowledge industry center in Anyang-si, Gyeonggi-do, were fully sold out within five days of the contract start, covering all 306 units.

Similarly, the dormitories in the ‘Geumgang Pentarium IX Tower’ knowledge industry center in Hwaseong-si, Gyeonggi-do, which were sold in June 2018, were fully sold out within a week of the contract start. The ‘Misa Riverside SK V1 Center’ dormitories supplied in the Hanam-si area of Gyeonggi-do the same year also succeeded in contracting all 365 units.

The industry cites factors such as proximity to workplaces, regular rental income, and relatively regulation-free investment products as reasons for the popularity of dormitories within knowledge industry centers. These dormitories are located very close to workplaces, eliminating commuting time concerns, and offer excellent infrastructure with various commercial and convenience facilities within the knowledge industry centers, providing a good work-life balance that is highly preferred by workers, resulting in low vacancy rates.

Additionally, dormitories within knowledge industry centers are free from resale restrictions and are not counted as housing units, allowing for freer investment, which is another reason for their popularity.

Moreover, with the base interest rate lowered to 0.5% as of May, profits from savings and deposit products have diminished, increasing interest in rental products that can generate stable income. According to data from the Korea Federation of Banks, the basic interest rates for first-tier financial institution deposit products currently (July) range from 0.4% to 1.3%, remaining below 2%.

Accordingly, the dormitory ‘Public House’ within ‘Hyundai Knowledge Industry Center Gasan Public,’ which Hyundai Construction is launching in July in Gasan-dong, Geumcheon-gu, Seoul Digital Industrial Complex, is attracting investors’ attention.

‘Hyundai Knowledge Industry Center Gasan Public’ will be developed as the largest complex in Seoul, with three buildings from five basement floors to 27 aboveground floors, totaling approximately 260,000 square meters?1.6 times the total floor area of the 63 Building. Commercial facilities will be located from the first basement floor to the second floor above ground, and ‘Public House’ dormitories will be supplied on separate buildings from the 6th to the 26th floors, with exclusive areas of 20 to 30 square meters and a total of 567 units.

‘Public House’ separates the entrance from the office facilities for privacy and includes various amenities such as a lounge, coin laundry, and shared kitchen to enhance residents’ convenience. The structure enables a one-stop lifestyle combining work, residence, and commercial facility use, which is expected to save commuting time and improve work efficiency. In particular, the commercial facilities within the complex function as a village-type mall, allowing for convenient living, and a specialized design themed around green spaces enables a pleasant residential environment.

‘Hyundai Knowledge Industry Center Gasan Public’ offers optimal location conditions for corporate activities. It is a station-area product within walking distance of Gasan Digital Complex Station, a transfer station for subway lines 1 and 7, and is adjacent to road networks such as Seobu Expressway, Nambu Circular Road, and Export Bridge.

The interiors are equipped with appliances and furniture including a washer and dryer, built-in refrigerator-freezer, two-burner induction cooktop, built-in wardrobes, built-in storage, a dry powder room combined lower vanity sink, and pantry. A service box for storing laundry and parcels is installed next to the entrance door to enhance residents’ convenience.