Grab Commercial Spaces Next to Large Hospitals... Rising Prices Amid Full Sales of Commercial Properties

- Strong rental demand from fixed and floating populations... Low vacancy rates and excellent transportation
- Large commercial facility sales near major hospitals continue, including Daegu 'Dongsungro SK Leaders View Avenue'

Amid the clear polarization in commercial property sales, shops near large hospitals are emerging as a focus of investor interest. Shops near large hospitals have the advantage of solid rental demand due to fixed demand from medical personnel and the floating population visiting the hospitals.

When a large hospital is established, the number of medical staff residing in the hospital and patients increases, thus exerting a significant influence on the surrounding commercial district. Visitors to the hospital tend to have active consumption, and since pharmacies and other medical facilities follow large hospitals, the vacancy rate is low.

Additionally, large hospitals have steady visitors even on weekends and weekday evenings, and because they are located in areas with good accessibility, they benefit from excellent transportation networks. Furthermore, the expansion of surrounding living infrastructure and job creation effects can be expected, positively impacting real estate and regional economic revitalization.

In the sales market, shops near large hospitals are also thriving. In June, the ‘Duryu Centreville The City’ shops near Daegu Catholic University Hospital (779 beds) in Dalseo-gu, Daegu, which was supplied, succeeded in finding owners in a short period.

The shops within the ‘Hakjeong Station Hyosung Harrington Place’ complex in Buk-gu, Daegu, which were sold in 2018, also enjoyed high popularity. These shops, located near Chilgok Kyungpook National University Hospital with 652 beds, were all taken by investors.

The value of shops around large hospitals is also rising. According to the Korea Real Estate Agency’s official real estate price notifier, the standard land price of the commercial area near the west side of Kyungpook National University Hospital in Jung-gu, Daegu, is 3.87 million KRW per square meter, more than twice that of other areas farther from the hospital (near Samdeok Elementary School, 1.73 million KRW).

A real estate expert said, "Shops near large hospitals have a solid demand base, so concerns about vacancies are low," adding, "As the aging society increases demand for apartments near large hospitals, the future value of shops around hospitals is also rising day by day."

New sales near large hospitals are continuing.

Near Kyungpook National University Hospital in Daegu, ‘Dongsung-ro SK Leaders View Avenue’ is scheduled to be sold this month. Located at 5 Samdeok-dong 2-ga, Jung-gu, Daegu, ‘Dongsung-ro SK Leaders View Avenue’ is a commercial complex within the ‘Dongsung-ro SK Leaders View’ residential complex, consisting of 335 households with a floor area of 84㎡, ranging from basement level 5 to a maximum of 48 floors above ground, with a total floor area of approximately 16,076㎡ (about 4,863 pyeong). This commercial complex is close to Kyungpook National University Hospital, one of the large hospitals frequently visited by Daegu citizens. According to the main treatment statistics on the Kyungpook National University Hospital website (as of 2019), the annual number of patients receiving treatment at the hospital was 397,460. Additionally, Jung-gu Office, Kyungpook National University College of Medicine, and Daegu Metropolitan Central Library are nearby, and it is located in the Dongsung-ro commercial district, Daegu’s largest commercial area, providing abundant demand. Convenient transportation is also an advantage. Daegu Metro Lines 1 and 2’s Banwoldang Station and Line 2’s Kyungpook National University Hospital Station are nearby, and Daegu Station and KTX Dongdaegu Station are also close. By car, one can access various parts of Daegu via Dalgubeol-daero, Gukchaebosang-ro, Taepyeong-ro, and Jungang-ro.

Also, near Keimyung University Daegu Dongsan Hospital in Daegu, Shinyoung Construction is scheduled to sell ‘Seomun Market Station Ziwell Avenue’ this month. Located at 103-9 Daeshin-dong, Jung-gu, Daegu, ‘Seomun Market Station Ziwell Avenue’ consists of a total of 59 units from the 1st to the 3rd floor. Daegu Metro Line 3’s Seomun Market Station and Keimyung University Daegu Dongsan Hospital are nearby.