"Top Safety" 1,000-Unit Large Complex in Bugae 2-dong 'Bupyeong Kolon Haneulchae' Offers 18 Commercial Units
High Purchasing Power in School District Residential Area... Sunken, Attached, and Terrace-Type Specialized Designs Boost Attraction
Amid the unprecedented global COVID-19 pandemic and an ultra-low interest rate environment close to zero, the value of immovable assets such as real estate continues to soar daily. Especially, investors weary of the complex and multifaceted regulations in the housing market are turning their attention to the income-generating real estate market, where they can enjoy both rental income and capital gains by avoiding regulations. As a result, news of commercial property sales in promising areas is attracting nationwide interest.
A representative promising area is Incheon, which has rapidly increased its regional value and market price in the first half of this year, based on major development projects such as the new railway lines crossing Seoul and the metropolitan area, including the GTX-B line and the Wolgot-Pangyo double-track railway. According to statistics from the Korea Real Estate Board, the apartment complex with the highest first-priority subscription competition rate among nationwide apartments sold in the first half of the year was ‘Bupyeong Station Hanla Vivaldi Treviang’ supplied in April in Bupyeong-gu, Incheon, with an average competition rate of 251.9 to 1. The sales market was also booming. According to Real Estate 114, the house price increase rate in Incheon in the first half of this year was 6.0%, ranking third nationwide after Sejong (9.2%) and Daejeon (6.5%). This is twice the 3.0% recorded in Seoul.
However, noticing this upward trend, the government designated the entire Incheon area as a regulated area and Yeonsu-gu as a speculative overheating district through the June 17 real estate measures, initiating regulations. Consequently, the heat of the housing market began to shift to the income-generating real estate market, which is a ‘regulation-free zone.’ Neighborhood living facilities such as commercial spaces within large apartment complexes, where fixed demand is guaranteed and both tenants and landlords can earn stable income, are especially popular.
Amid this, it has become a hot topic that the commercial spaces within the ‘Bupyeong Kolon Haneulchae’ complex, which stirred the market by completing contracts for 550 general sale units out of a total of 922 units in just over a month after its April 2018 sale, will enter the sales schedule starting from the 24th. The supply volume consists of 18 stores with exclusive areas ranging from 26 to 100 square meters, located in one welfare facility building within the ‘Bupyeong Kolon Haneulchae’ complex at 88-2 Bugae 2-dong, Bupyeong-gu, Incheon Metropolitan City, spanning from basement level 1 to the 2nd floor above ground. Compared to the average exclusive rate of 50-60% in commercial spaces within surrounding apartment complexes, this complex offers a high exclusive rate of about 70%, increasing the usable area, which is expected to generate significant tenant demand. The commercial spaces include four sunken-type basement level 1 stores, five ground level 1 stores favorable for customer inflow due to their adjacency, and nine terrace-type ground level 2 stores that allow for more spacious use, broadening the range of business options.
The greatest strength of the commercial spaces within the ‘Bupyeong Kolon Haneulchae’ complex as commercial products is undoubtedly the solid underlying demand. Around ‘Bupyeong Kolon Haneulchae,’ there are about ten schools of various levels, including Buheung Elementary, Bugwang Elementary, Bunae Elementary, Bupyeong-dong Middle, Bupyeong Girls’ Middle, Bugae Girls’ High, and Sangil High, ensuring a constant flow of students and parents throughout the day. As a neighborhood commercial area in a ‘residential-dense area’ corresponding to a prestigious school district, high purchasing power can also be expected. The ongoing redevelopment projects in the area are gradually expanding and revitalizing residential and commercial infrastructure, which is expected to bring considerable direct and indirect benefits.
A sales official for the ‘Bupyeong Kolon Haneulchae’ commercial spaces stated, “There are large apartment complexes nearby such as Bugae Jugong Complex 5 with 960 units, Complex 6 with 1,240 units, and Complex 7 with 975 units, and the resident population in the low-density residential areas such as row houses and multi-family houses in the vicinity is also enormous.” He added, “With nearly 1,000 households of fixed demand from ‘Bupyeong Kolon Haneulchae’ residents alone, stable income generation without difficulty is expected.” He explained, “The commercial spaces located on the 106-107 side of the apartment complex, where pedestrian entrances are situated, and the corner location at Bugwang Elementary School intersection offer excellent visibility and accessibility. Moreover, specialized designs such as sunken and terrace types have been applied to the commercial spaces themselves, providing a definite competitive advantage in attracting customers.”
The distance to major commercial areas such as Bupyeong Market and Bupyeong Station commercial districts, which are the region’s central and large commercial zones, can also positively influence the increase in effective demand. The underlying demand is abundant, and competing commercial areas are far away, making it truly a ‘blue ocean’ product. It usually takes 20 to 30 minutes on foot at a normal pace to reach two commercial districts from ‘Bupyeong Kolon Haneulchae’ and nearby complexes. A local real estate agent commented, “While it is burdensome to casually visit for shopping or cultural activities without a special purpose due to the distance, it is true that residents had to endure long distances because surrounding commercial areas were insufficient due to reconstruction and redevelopment.” He added, “If trendy new commercial spaces like those within the ‘Bupyeong Kolon Haneulchae’ complex are established in prime locations along the main intersection roads, it will greatly help satisfy the local residents’ needs. Retail businesses and academies, which are essential lifestyle infrastructure, are ideal.”
The commercial spaces within the ‘Bupyeong Kolon Haneulchae’ complex will accept bid deposit payments and bid registrations from Monday, August 24, to Wednesday, August 26, until 11 a.m. The bid deposit per store is 10 million KRW. Multiple bids are allowed, but duplicate applications for the same store are not permitted. Bid submission and bidding will take place from 10 a.m. to 2 p.m. on the 26th, followed by bid opening and winner selection. Contracts will be signed from 10 a.m. to 5 p.m. on the 27th. If two or more bidders submit the same amount, the winner will be decided by lottery.
The contract deposit to be paid at the time of contract signing is 10% of the winning bid price. The first interim payment of 10% is due in October, and the remaining 80% balance is to be paid in December of this year when completion and move-in begin. All procedures will be conducted in Room B01 on basement level 1 of the commercial building. For detailed information such as supply prices and reserved prices for each unit, please refer to the ‘Bupyeong Kolon Haneulchae’ website.
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