Commercial Market Also Favors Brands... Interest in 'Hills Avenue Gamsam Central'

The influence of brands is now intensifying in commercial facilities as well. Not only is the marketability of branded products, which attracted attention in residential facilities such as apartments and officetels, being applied to commercial facilities, but the residential demand within the same complex also serves as a relatively stable underlying demand for commercial facilities.

Additionally, based on long-standing experience, securing a location within the region allows for expected underlying demand. In particular, branded commercial facilities often have the advantage of securing residential demand because they are mostly sold together with residential facilities or developed within previously sold complexes.

A representative example is ‘Hills Avenue,’ a commercial facility brand introduced by Hyundai Engineering. ‘Hills Avenue Yeouido,’ which was sold in Yeongdeungpo-gu, Seoul, last June, was completely sold out within one day of the contract start. This commercial facility, located within the ‘Hillstate Yeouido Pine Luce’ complex sold earlier, is situated between the business district and residential town, making it easy to secure foot traffic and attracting attention due to the rarity of branded commercial facilities in the area.

‘Hills Avenue’ commercial facilities are also being sold in Daegu. ‘Hills Avenue Gamsam Central,’ currently on sale in Dalseo-gu, Daegu Metropolitan City, is a commercial facility located on the 1st and 2nd floors within the residential complex Hillstate Gamsam Central, which consists of three buildings ranging from five basement floors to a maximum of 45 floors above ground. The first floor has 37 units, and the second floor has 49 units, totaling 86 units.

Hills Avenue Gamsam Central currently boasts the highly rare ‘Hillstate’ brand power in the Daegu area. Following the complete sale of all officetel units within three days of contract signing, the apartments were also validated for location and marketability with a highest subscription rate of 60.17 to 1 (exclusive area 84㎡ Type A) and a first-priority average competition rate of 15.67 to 1.

The Hills Avenue Gamsam Central commercial facility is located in a prime spot within the Jukjeon Intersection commercial district, the central commercial area of West Daegu. In addition, it has an underlying demand of 512 households, including 393 apartment units and 119 officetel units within the complex, as well as the large-scale residential demand of the Jukjeon Intersection area. Furthermore, a large commercial district is expected to be formed along with the surrounding mixed-use residential complexes under development, and with the proximity to Jukjeon Station, excellent transportation conditions are expected to support the underlying demand.

For example, according to data from the Seoul Real Estate Information System, the individual publicly announced land price of ‘Venetia Mega Mall,’ a commercial facility within the ‘Lotte Castle Venetia’ complex in Jung-gu, Seoul, was 8.94 million KRW per square meter last year, which is about 55.75% higher than the publicly announced land price of non-branded commercial facilities (5.74 million KRW) located within approximately 1 km radius.

An industry insider said, “Branded commercial facilities are easily remembered by consumers due to their recognition and often become landmarks within the region due to their excellent locations. Especially, based on long-term achievements, they have high trust and business stability, so the popularity of branded products in the commercial market is expected to increase in the future.”