Proven Location... New Apartments Near Major Corporations and Administrative Towns 'In Focus'

Amid increasing market uncertainty due to the government's successive real estate regulations, apartments near large corporations or administrative towns are worth paying attention to. These areas have well-established living infrastructure such as transportation, commercial districts, and education, offering excellent residential conditions. Moreover, they are proven locations supported by solid underlying demand, resulting in strong subscription competition rates as well as robust sales prices.

According to data from Real Estate 114, as of June, the apartment sale price per 3.3㎡ in Cheonan City, Chungnam Province was 7.36 million KRW, the highest in the Chungnam region. The area includes Cheongsu Administrative Town, where the District Court, District Prosecutor's Office, and Tax Office are concentrated, as well as numerous large corporate industrial complexes such as Samsung SDI, Samsung Display, and the planned LG Household & Health Care. This steady influx of housing demand and excellent residential convenience are reflected in the market prices.

The price increases by complex in the area are also notable. In Dongnam-gu, the ‘Haengjeong Town Doosan We've The Park’ (occupied in May 2018) saw its sale price per pyeong rise by 18.95% (from 8.17 million KRW to 9.72 million KRW) over one year (June 2019 to June 2020). Similarly, in Seobuk-gu, ‘Buldang J-Well Prugio’ (occupied in April 2016) experienced a 15.12% increase in sale price per 3.3㎡ (from 14.98 million KRW to 17.25 million KRW) during the same period. Both complexes significantly outperformed the regional average increase rate of 5.44%.

Furthermore, apartments supplied near large corporations or administrative towns also show excellent subscription results. According to data from the Korea Real Estate Agency's Subscription Home, in March, ‘Magok District Complex 9’ in Gangseo-gu, Seoul, attracted over 30,000 applicants for 252 units (excluding special supply) in the first-priority subscription, recording an average competition rate of 146.82 to 1. This complex is adjacent to large corporate research complexes such as LG Innotek, LG Chem R&D Center, and the planned E-Land R&D Center.

In May, ‘Duryu Centreville The City’ supplied in Dalseo-gu, Daegu, is located near numerous administrative facilities including the Daegu Metropolitan City Hall, scheduled to move before 2025, Seodaegu Tax Office, and Daegu Family Court. This complex recorded an average competition rate of 38.62 to 1 in the first-priority subscription, with 8,225 applicants for 213 units excluding special supply.

A real estate expert explained, “Apartments located near large corporations or administrative towns consistently attract demand with purchasing power, and the abundant floating population accelerates the expansion of living convenience facilities, making them highly preferred by buyers. During market booms, price increases are significant, and even in downturns, prices tend to be rigid downward, making them worth watching in unstable market conditions like now.”

This month, new apartments backed by demand from large corporate industrial complexes and administrative towns are about to be supplied, attracting buyers' attention. Doosan Construction plans to supply ‘Haengjeong Town Central Doosan We've’ in Cheongdang-dong, Dongnam-gu, Cheonan City, Chungcheongnam-do. The complex will consist of 9 buildings, ranging from 2 basement floors to 26 floors above ground, with a total of 655 units sized between 74 and 84㎡.

This complex is gaining attention as a residential area behind the surrounding industrial complexes and Cheongsu Administrative Town. The LG Household & Health Care Future General Industrial Complex, covering approximately 386,000㎡ and scheduled to be completed this year, is about a 15-minute drive away. Cheongsu Administrative Town, where various government offices and financial institutions are concentrated, is about a 10-minute walk away. Additionally, the nearby Pungse Industrial Complex and the 5th General Industrial Complex, employing over 4,300 people (according to Cheonan City Hall), are expected to provide close proximity demand.

Several transportation benefits are underway, including the Cheonan?Asan Expressway (scheduled for 2022), Cheonan?Pyeongtaek Private Expressway (scheduled for 2023), Seoul?Sejong Expressway (scheduled for 2024), and the extension of the metropolitan subway from Cheonan Station to the Independence Hall (proposed in Chungcheongnam-do's 4th National Railroad Network Construction Plan), enhancing future value. Additionally, the proximity to Gyeongbu Expressway, Cheonan?Nonsan Expressway, Cheonan-daero, and Nambu-daero facilitates easy access to the Seoul metropolitan area and throughout Cheonan.

Living infrastructure is also well established. Within a 1.5 km radius from the complex are educational facilities such as Cheongdang Elementary, Gaon Elementary, Cheongsu Elementary, Gaon Middle, Saesaem Middle, Cheongsu High, and Cheonan Girls' High, with plans to establish Cheongdang 2nd Elementary School. For living convenience, Homeplus (Cheonan branch), Galleria Department Store (Center City branch), CGV (Cheonan branch), and Cheonan Museum are about a 15-minute drive away. The area also boasts abundant green spaces such as Cheonan Sports Park and Cheongdang Sports Park.

Cheonan City, where the complex is located, is a non-regulated area. As of the announcement date for resident recruitment, only residents who have lived in Cheonan for more than six months and have held a subscription account for more than six months, meeting the deposit requirements by region and area, are eligible for first-priority subscription. Resale of pre-sale rights is also possible immediately after contract, attracting interest not only from actual buyers but also investors from regulated areas such as Daejeon, Sejong, and Cheongju in Chungbuk.