Office yields were highest... Popularity of Seoul Digital Industrial Complex area amid strong income-generating real estate market

- Prolonged Low Interest Rates and Abundant Liquidity Expand the Investment Era
- Knowledge Industry Centers Strong Despite Regulations, Offering Various Tax Benefits

[‘Gasan Urban Walk’ bird's-eye view]

Among products commonly referred to as ‘income-generating real estate’ such as offices, commercial buildings, and officetels, offices have been found to offer the highest investment returns. Supply of knowledge industry centers has significantly increased since last year, attracting attention from investors.

According to real estate information company Kyungjemanlab, based on the Korea Real Estate Agency’s ‘2020 Q4 Commercial Real Estate Leasing Trend Survey,’ the nationwide office investment return rate in Q4 last year was 1.64%, which is 0.43 percentage points higher than that of small-scale commercial buildings. Following offices, the returns ranked as follows: △ collective commercial buildings 1.44% △ medium-to-large commercial buildings 1.38% △ small-scale commercial buildings 1.21%.

Notably, the Q4 return rate recorded the highest figure for the entire year. Vacancy rates also decreased. The nationwide office vacancy rate in Q4 last year was 11.0%, slightly lower than at the beginning of the year, marking the lowest level since 2013. Consequently, investors are showing strong interest in investing in knowledge industry centers.

A prime example of this investment boom is the Seoul Digital Industrial Complex area. This area has seen numerous knowledge industry center sales in recent years, which is attributed to the gradual realization of transportation development benefits and a steady increase in the number of companies. As accessibility improved and the number of companies grew, supply naturally increased as well.

With growing interest in knowledge industry centers due to these various advantages, the newly launched ‘Gasan Urban Walk’ on the Yangjisa site in Gasan Digital Complex is attracting attention.

This knowledge industry center is located in Geumcheon-gu, Seoul, and is designed as two buildings with 5 basement floors and 20 above-ground floors. Building I comprises 503 office units with a total floor area of 91,713㎡, while Building II has 340 units with a total floor area of 61,611㎡, including neighborhood living facilities and office support facilities.

A key feature of ‘Gasan Urban Walk’ is that it is the last complex to be developed within the Gasan Digital Complex station area. Development of complexes, including knowledge industry centers in Gasan Digital Complex 3rd district, is nearing completion, making it difficult to find new sale complexes.

However, ‘Gasan Urban Walk’ is located just a 4-minute walk from Gasan Digital Complex Station, which is a double station area served by Lines 1 and 7, offering excellent accessibility as a station-area knowledge industry center. In particular, compared to the 1st and 2nd districts, the 3rd district benefits from smooth road traffic with access to Gangnam Circular Road, Western Arterial Road, Southern Circular Road, and Siheung-daero, providing an advantage in road accessibility.

Additionally, the underground construction project of the Western Arterial Road, scheduled to open in 2021, is in its final stages, and the Sinansan Line connecting Ansan and downtown Seoul is also under development, raising expectations for future value through transportation improvements.

Moreover, the knowledge industry center is near Ansan Stream, offering scenic views, and with the Western Arterial Road underground project expected to be completed in 2021, the area around Ansan Stream is anticipated to be developed as a recreational space, providing a pleasant working environment for employees.

Furthermore, facilities designed for work convenience such as seminar rooms, conference rooms, shared warehouses, fitness centers, shower rooms, and locker rooms are included, which are expected to enhance employee job satisfaction.

Meanwhile, the ‘Gasan Urban Walk’ promotional center is located in Geumcheon-gu, Seoul.