Interest in commercial income-generating real estate is increasing. This is because apartment complexes, the traditional main real estate investment destination, are heavily regulated, causing idle funds to flow into income-generating real estate.
In fact, due to the impact of stringent real estate measures, the number of apartment sales transactions in Seoul last month was around 2,000, less than half of the previous month's volume. According to the Seoul Real Estate Information Plaza, an analysis of apartment transactions in Seoul in September showed a total of 2,251 sales, a decrease of more than half compared to August (4,964 transactions). Compared to July (10,658 transactions), it was only about 21%.
On the other hand, income-generating real estate is free from regulations such as housing quotas, resale restrictions, and tax burdens, and has relatively long lease periods, making vacancy management easier. As a result, stable returns are expected, attracting investors' attention.
Given this situation, the volume of commercial facility transactions is also considerable. According to the Korea Real Estate Board, as of August this year, the nationwide transaction volume of commercial and office real estate was 222,372 cases, a 12.2% increase compared to 198,202 cases in the same period last year.
Amid growing investor interest in commercial facilities, the ‘Bupyeong Sipjeong The Sharp Mall Commercial Facility’ developed by Incheon Urban Corporation is attracting attention. It is located at 216 Sipjeong-dong, Bupyeong-gu, Incheon Metropolitan City, and is planned to consist of 9 buildings with a total of 219 stores across 1 to 4 floors above ground.
The Bupyeong Sipjeong The Sharp Mall commercial facility boasts an excellent location and abundant hinterland demand. It has a fixed demand within a complex of 5,678 households and a hinterland commercial area that absorbs the surrounding high-density villa neighborhoods. Additionally, elementary, middle, and high schools within walking distance, Bupyeong General Market, 2001 Outlet, Moda Department Store, NewCore Outlet, Incheon Metropolitan City Medical Center, and Incheon Sarang Hospital are nearby, enabling a natural influx of foot traffic.
Hinterland demand is a factor that influences yield and market price, and locations advantageous for securing foot traffic include residential and business-dense areas, station areas, and main roads. When fixed demand is secured, investment stability is also high, which is favorable for price formation and potential future capital gains.
Most importantly, it boasts an optimal location adjacent to the main road next to the main entrance of an apartment complex with excellent accessibility, near Dongam Station (an express stop on Line 1). Furthermore, major projects such as the establishment of the GTX (Great Train Express) B line in the metropolitan area are underway, which is expected to positively impact increased mobility demand and commercial district revitalization.
A local real estate agent commented, “The commercial leasing market is benefiting from the spillover effect of stringent regulations on the housing market. Especially recently, officetels have also become subject to regulations, so many investors are inquiring about commercial facilities.”
Meanwhile, to participate in the commercial property bidding, applications are being accepted via the OnBid system until the 22nd. For sales-related consultations, inquiries can be made to the Sales Business Department of Incheon Urban Corporation.
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