- Zero Interest Rates and Pandemic-Driven Unprecedented Recession Make Knowledge Industry Centers Stable Investment Products
- Strengthened Housing Regulations... Knowledge Industry Centers Emerge as New Investment Destinations with Increased Supply in Popular Areas Free from Regulations
On the 15th, as the Bank of Korea kept the base interest rate at 0.5%, signaling a prolonged zero interest rate era, interest in income-generating real estate has been concentrated since the beginning of the year.
In particular, among income-generating real estate, as vacancy rates in offices have increased due to the impact of COVID-19, demand is expected to shift toward more stable knowledge industry centers.
Knowledge industry centers are representative income-generating products that benefit from tax reductions such as a 50% reduction in acquisition tax and a 37.5% reduction in property tax compared to offices, gaining reflective benefits as regulations on residential real estate tighten. As their popularity has increased, while long-term sales over several years were common in the past, recently complexes in popular metropolitan areas have been sold out within a few months, enjoying popularity comparable to residential real estate.
In fact, Geumgang Housing’s "Geumgang Penterium IX Tower" in Dongtan 2 New Town attracted attention by selling out within one month of the start of sales. "GIDC Gwangmyeong Station," supplied in the Gwangmyeong area of Gyeonggi Province, also sold out all units within a month after sales began. "Hyundai Premier Campus Mall," sold in Dasan New Town, Namyangju, completed sales within three months despite a large supply volume.
Due to this popularity, the supply of knowledge industry centers is also increasing. According to data analyzed by the Commercial Information Research Institute on the statistics from the Korea Industrial Complex Corporation on the 5th, 29 knowledge industry centers are scheduled to be completed nationwide this year, matching the supply volume of last year, which recorded the highest supply performance ever. Looking at the number of knowledge industry centers completed over the past five years, starting with 13 in 2017, the supply has gradually expanded to △22 in 2018 △20 in 2019 △29 in 2020.
Notably, among the 29 knowledge industry centers scheduled for completion this year, 22 are in the metropolitan area, with Gyeonggi Province having the most at 12 centers nearing completion. Accordingly, knowledge industry centers located in popular new towns within Gyeonggi Province are expected to differentiate their competitiveness with advantages such as convenient transportation and large-scale residential hinterlands.
In Gwanggyo New Town, a representative self-sufficient new town in the Gyeonggi area, the knowledge industry center "Gwanggyo Q-Campus" is scheduled for sale on the last urban support facility site of Gwanggyo Technovalley.
This complex will be developed with a total floor area of 44,765㎡ from basement level 5 to ground level 15, comprising 303 units and 15 neighborhood living facilities. The neighborhood living facilities account for about 4% of the total floor area, which is significantly lower than the 10-15% typical of other knowledge industry centers, allowing for stable investment considering the nearby office workers and occupants on upper floors.
Gwanggyo Technovalley, where Gwanggyo Q-Campus is located, is a cutting-edge industrial complex housing institutions and companies engaged in bio, pharmaceutical, and IT research, including the Gyeonggi Bio Center, Next-Generation Convergence Technology Institute, Korea Nano Technology Institute, Gyeonggi Small and Medium Business Comprehensive Support Center, Gyeonggi Institute of Science and Technology, and Gyeonggi Credit Guarantee Foundation.
Additionally, it is close to the Legal Town, which includes Suwon High Court, Suwon High Prosecutors' Office, Suwon District Court, and Suwon Prosecutors' Office, as well as Gyeonggi Convergence Town, where seven institutions including the Gyeonggi Provincial Government Office, Gyeonggi Provincial Assembly, and Gyeonggi Provincial Office of Education are scheduled to move in. Furthermore, it is adjacent to the Suwon Convention Center, the only large convention center in the southern Gyeonggi region, a complex MICE facility including exhibition halls, department stores, hotels, and an aquarium, enabling cluster effects with nearby institutions and abundant hinterland demand.
The transportation environment, which determines the value of knowledge industry centers, is also exceptional here. Since Gwanggyo Q-Campus is located in the popular new town of Gwanggyo, it is within walking distance of Gwanggyo Station on the Shinbundang Line, known as the Gold Line, and adjacent to Changryong-daero, providing easy access to Yeongdong Expressway Dong Suwon IC, Yongseo Expressway Gwanggyo Sanghyeon IC, and Suwon Northern Ring Road.
Moreover, the extension of the Shinbundang Line (Gwanggyo to Homaesil) is scheduled to open, further improving Gwanggyo’s transportation conditions. The Shinbundang Line extension from Gangnam to Sinsa is also scheduled to open in 2022, allowing travel from Gwanggyo to Sinsa in about 40 minutes, and once the second phase from Yongsan to Sinsa is completed, it will take 47 minutes to Yongsan, dramatically enhancing access to Seoul.
Gwanggyo Q-Campus is scheduled to be constructed by Taeyoung Construction, and the sales promotion center is located in Suwon, Gyeonggi Province.
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