Strong Housing Demand Secured Amid Intense Regulations, Local Commercial Facilities Sold Out
Infrastructure Formation Due to Stable Residential Supply... Expectation of Stable Investment Returns
Despite stringent regulations on the housing market, the popularity of income-generating real estate within some large-scale development areas, proven by high subscription competition rates, shows no signs of waning.
The most important factor in evaluating the value of commercial and office real estate, commonly referred to as income-generating real estate, is undoubtedly the underlying demand. In particular, new towns, housing sites, or new urban areas with stable residential supply have proven abundant underlying demand, leading to a steady supply of income-generating real estate.
In 2019, the commercial facilities within the ‘Songdo The Sharp Centopia’ complex in Songdo International City sold out all 60 units within one day of contract commencement, achieving a peak competition rate of 320 to 1. Similarly, the ‘Front Castle Dongtan’ commercial facilities within the ‘Dongtan Station Lotte Castle’ complex in the Dongtan 2 New Town Metropolitan Business Complex sold all 110 units within one day of contract start. Additionally, the 24 commercial units within the ‘Eco City Desiang Nest’ complex in Block 8 of Jeonju Eco City also sold out within one day of contract commencement.
The common factor among these quickly sold-out commercial facilities is that they are located in areas that demonstrated strong housing demand despite high-intensity regulations.
Popular residential areas are also driving enthusiasm for commercial land sales. In Dasan New Town, Namyangju, where about 30,000 housing units were successfully supplied, 64 lots of single-family house land with commercial use recorded an average competition rate of 27 to 1. Moreover, the central commercial land supplied in Incheon Luwon City, which is currently a hot spot in the Incheon sales market, was auctioned at 1.5 times the expected price.
Industry experts say, “In new towns or large-scale development areas, lifestyle infrastructure must be established for newly incoming demand, so the supply of commercial and office facilities is also an important factor. With the recent low-interest-rate trend and contraction in the housing market, interest in income-generating real estate is increasing, so it is advisable to pay attention to popular housing market areas.”
Meanwhile, a large-scale commercial facility to be supplied in Misagangbyeon City, emerging as a key residential area in the eastern metropolitan area, is attracting the attention of demanders ahead of its launch.
‘Misagangbyeon Skypolis Mall,’ supplied in Misagangbyeon City, is a large-scale street-type commercial facility consisting of 398 units within a large knowledge industry center spanning from basement level 4 to ground level 10, with a total floor area of 315,935㎡.
‘Misagangbyeon Skypolis Mall’ can secure a fixed demand base from corporate employees and residents within the knowledge industry center, allowing for stable rental income. Upon office occupancy in ‘Misagangbyeon Skypolis,’ a fixed underlying demand of about 12,000 people will be established, and the population of approximately 36,000 households within Misagangbyeon City is expected to serve as additional underlying demand.
Furthermore, Misagangbyeon City, where ‘Misagangbyeon Skypolis Mall’ is located, boasts excellent road transportation networks with easy access to out-of-town and Hanam city areas via Misadaero, and proximity to Misa IC, the Outer Ring Road, and Jungbu Expressway. Notably, the extension of Subway Line 5 to ‘Misa Station’ opened in 2020, significantly improving accessibility to Seoul.
Especially with the announcement of the Line 9 extension plan, ‘Misagangbyeon Skypolis Mall,’ adjacent to the extended line, is expected to directly benefit. Along with this, demanders from Wangsuk New Town and Dasan New Town, designated as part of the 3rd New Town project, are also expected to form part of the underlying demand.
Once this line opens, ‘Misagangbyeon Skypolis Mall’ will serve not only Misagangbyeon City but also three new towns including Dasan New Town and Wangsuk New Town, boasting abundant underlying demand.
The product quality is also excellent. Following the sell-out of ‘Misagangbyeon Skypolis,’ composed of office facilities and dormitories, the ‘Misagangbyeon Skypolis Mall’ to be supplied is an open-type commercial facility, unlike enclosed commercial spaces, offering comfort and eco-friendly features, making it a well-received product in the COVID-19 era.
‘Misagangbyeon Skypolis Mall’ is composed of street-facing shops arranged in a linear fashion, securing visibility and customer flow convenience. Designed as an open commercial facility, it reduces the risk of COVID-19 infection compared to enclosed commercial spaces.
Notably, the largest workplace daycare center in Hanam, approximately 1,299㎡ (capacity about 210 people), is confirmed to be located on the 1st and 2nd floors of the commercial facility. Additionally, a ‘Sports Theme Park Bounce’ spanning about 2,191㎡ (663 pyeong) will be established on basement levels 1 and 2. This facility offers a new concept of urban play culture using the elasticity of large trampolines to provide freedom defying gravity and healthy enjoyment. As the largest four-season sports theme park in Korea, it is expected to significantly increase foot traffic to the commercial facility.
Moreover, a large experience zone of about 1,486㎡ (449 pyeong) will be set up on the 2nd floor of the commercial facility. Various programs are confirmed, including a kids caf? for children and office workers, a healing media art exhibition hall, cheese and macaron experience and sales center, rhythmic gymnastics, coding education, art education, and urban farming experiences, making it a commercial facility with a wide range of choices.
The promotional center for Misagangbyeon Skypolis Mall is located in Songpa-gu and Hanam-si areas, and in preparation for COVID-19, disinfection is conducted and visitors are provided with disinfectant supplies. For detailed inquiries about Misagangbyeon Skypolis, faster consultation is available through reservations.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
