Is the Hangang Premium Only for the Housing Market? The Office Market Also Enthralled by the Hangang Premium

Rapid Price Surge in Complexes Boarding Last Train of Han Riverfront Development Restrictions
Han River Adjacent Sites and Knowledge Industry Centers with Views Also Selling Out Popularly

The premium of riverside properties along the Han River, once considered exclusive to the housing market, is now expanding into the office market. As corporate and investment demand to own riverside locations increases, Han River office facilities are gaining significant attention.

Currently, the value of real estate in Seoul varies depending on how easily one can view and access the Han River.

In fact, the apartments overlooking the Han River in Gangnam and Seocho?undisputedly Korea’s representative affluent neighborhoods?have already surpassed 100 million KRW per 3.3㎡. Due to geographical characteristics, apartments in Gangnam facing the Han River inevitably face north, but the value of the Han River view has even surpassed the traditionally prized south-facing orientation in the residential market.

While the Han River is regarded as a formula for success in the real estate market, riverside development has so far been limited to the housing market. Moreover, recent projects such as the Seoul city’s Han River skyline maintenance and height restrictions have reduced project feasibility, increasing the scarcity of riverside real estate.

According to KB Real Estate data, the average sale price of a 124㎡ (single unit type) apartment in ‘Raemian Ichon Chellitus’ in Dongbu Ichon-dong, which was built up to 56 floors before the height restrictions and was part of the last wave of Han River development, is 3.35 billion KRW. This represents a price increase of over 1.8 billion KRW compared to the pre-sale price of 1.5 billion KRW (including 1:1 reconstruction and union member contributions) at the start of construction in 2011, demonstrating the rarity of riverside development complexes.

As the premium for Han River properties continues to rise, recent land developments adjacent to the Han River in Gyeonggi Province?such as Gimpo Han River New Town, Misa Riverside City, and Deok-eun Urban Development Project District?are accelerating, spreading riverside development into the office market as well.

In fact, large-scale knowledge industry centers such as Misa Riverside Skypolis and Hyundai Knowledge Industry Center Han River Misa 2nd Phase, located within Misa Riverside City with views of the Han River, have sold out quickly despite their total floor areas reaching hundreds of thousands of square meters. Some offices with Han River views have even formed pre-sale premiums worth tens of millions of KRW.

An industry expert said, “Expectations for Han River development have increased recently with the Seoul mayoral by-election, but the scarcity has grown due to the previously sluggish riverside development projects. Therefore, with continuous development of riverside land adjacent to Seoul and expansion into the office market, demand and interest from buyers are expected to increase further.”

As the Han River office market draws buyers’ attention, new pre-sale complexes that offer Han River premiums are about to be supplied.

In May, ‘GL Metro City Han River’ and the officetel ‘THE GL,’ developed by Hana Asset Trust and constructed by Hyundai Construction in Goyang City, Gyeonggi Province, will be offered for sale. This complex consists of two knowledge industry center buildings from basement level 6 to ground level 21, one officetel building ‘THE GL’ with 420 units ranging from 29 to 60㎡ up to 23 floors, and commercial facilities. Located at the forefront of the Deok-eun Urban Development Project District in Goyang City, it secures an unobstructed permanent view of the Han River. Various specialized designs to maximize the Han River view will be applied, and the site is conveniently connected to Gangbyeonbuk-ro and Jayu-ro.

Following the sell-out of the knowledge industry center in Misa Riverside City, the ‘Misa Riverside Skypolis Mall’ commercial facility is scheduled for sale. Unlike enclosed commercial facilities, the ‘Misa Riverside Skypolis Mall’ will consist of 400 open commercial units. The largest workplace daycare center in Hanam, approximately 1,299㎡ (capacity about 210 children), is confirmed on the first and second floors of the commercial facility, and a ‘Sports Theme Park Bounce’ of about 2,191㎡ (663 pyeong) will be established on basement levels 1 and 2.