Hanshin Gongyeong to Launch Commercial Facilities at 'Hanshin The Hue Reserve' in Seonhwa-dong, Daejeon Next Month

Perspective View of Commercial Facilities at Hanshin The Hue Reserve in Seonhwa-dong, Daejeon

[Asia Economy Reporter Choi Dong-hyun] Hanshin Engineering & Construction announced on the 2nd that it plans to launch sales of the commercial facilities at 'Hanshin The Hue Reserve' in Seonhwa-dong, Daejeon, in January next year.

This complex is a residential-commercial mixed-use development located at 103-1 Seonhwa-dong, Jung-gu, Daejeon. It consists of three buildings ranging from 5 basement floors to a maximum of 49 floors above ground, comprising 418 apartment units with exclusive areas of 75 to 84㎡ and commercial facilities.

Seonhwa-dong, where the complex is located, is an old downtown area with various infrastructures already established, making it highly preferred for residential purposes. In addition to the first phase of 'Haneulchae Sky&' by Kolon Global recently launched in Daejeon and the upcoming second phase, active redevelopment projects are underway, indicating high potential for development as a new residential town.

The commercial facilities in the complex are expected to attract abundant demand based on these locational advantages. First, the 418 apartment households within the complex can be secured as a fixed consumer base within walking distance, and residents of the large-scale residential town to be developed nearby are also considered potential demand.

There is also abundant surrounding demand. With KTX Daejeon Station and Daejeon Subway Jungangno Station located nearby, the area is well-positioned to attract floating populations from transit hubs. Additionally, the proximity of the Bus Rapid Transit (BRT) stops allows absorption of consumers from neighboring areas.

Leisure demand inflow is also anticipated. The Daejeoncheon Stream flows right next to the complex, and a waterside walking trail has been established, enabling natural inflow of consumers. The 'River Green New Deal' project, which plans to utilize the Daejeoncheon lower road as a leisure and cultural space, is expected to increase the floating population.

There are many favorable factors to expand demand. In October, the National Balanced Development Committee approved the designation of Daejeon as an innovation city, accelerating the relocation of public institutions from the metropolitan area and the creation of industry-academia-research clusters. The Daejeon Station area development project is also underway on approximately 920,000㎡ in Jeong-dong, Dong-gu, aiming to foster commercial, business, residential, and cultural functions. Population inflow due to job creation is expected, further increasing the demand base.

Rapid commercial district activation is also expected. Major commercial districts in Daejeon, including Jungchon Customized Fashion Street, Jungang Market Food Alley, Seonhwa-dong Specialty Food Street, and Daeheung-dong Cultural and Arts Street, are located nearby, anticipating synergy effects through linkage among commercial areas.

The market environment is also positive. Amid the prolonged zero interest rate policy, income-generating real estate such as commercial facilities is gaining indirect benefits. According to the Korea Real Estate Board, the nationwide mid-to-large sized commercial building investment yield in the first half of the year was 2.49%, which annualized approaches 5%. In contrast, the highest interest rate offered by deposit products sold by commercial banks was only in the 1.9% range.

The relatively lower impact of regulations is another factor enhancing investment value. As the government has announced increasingly stringent real estate regulations targeting the housing market, demand is intensifying for products less affected by these regulations. Given the high possibility of additional real estate measures by the government, this trend is expected to continue for the time being.

A sales official from Hanshin Engineering & Construction stated, “With the low interest rate environment and government housing market regulations combined, income-generating real estate such as commercial facilities, which are relatively less affected by regulations, are gaining indirect benefits. The commercial facilities at Hanshin The Hue Reserve in Seonhwa-dong, Daejeon, are located in an excellent location with abundant demand, and inquiries from investors are continuing,” he added.