- Commercial facilities with expected investment returns higher than bank deposit interest rates attract liquid funds
- Transfer station area commercial facilities boast abundant foot traffic, promising stable income
Recently, with the strengthening of housing regulations and the continuation of a low-interest rate environment, investors' interest in income-generating products has been increasing. Since the savings deposit interest rate is below 1%, liquidity is flowing into commercial property investments that can offer higher returns.
In particular, commercial facilities located in transfer station areas where two or more subway lines are accessible are performing well in the commercial market. The commercial facilities within the ‘Hillstate Cheongnyangni The First’ complex, launched in May last year in Dongdaemun-gu, Seoul, sold out within half a day due to its popularity as a station-area complex near Cheongnyangni Station. Cheongnyangni Station serves four lines: Seoul Subway Line 1, Gyeongui-Jungang Line, Gyeongchun Line, and Suin-Bundang Line. Additionally, the ‘Hill's Avenue Sindorim Station Central’ in Guro-gu, Seoul, supplied in December last year, completed all contracts within five days. This complex is a transfer station commercial facility within walking distance of Sindorim Station, where Subway Lines 1 and 2 intersect.
An industry insider stated, “Transfer station commercial properties have twice the number of accessible lines, resulting in abundant foot traffic and stable income, with higher returns compared to single-line station areas. Moreover, transfer station areas have high scarcity value, attracting concentrated interest from investors.”
In fact, commercial facilities in transfer station areas are expected to generate high rental income based on stable demand. According to last year’s data on investment returns for medium-to-large commercial properties from the Korea Real Estate Board, Gyodae Station, a transfer station between Lines 2 and 3 in the Gangnam commercial district of Seoul, recorded the highest returns.
In July, commercial facilities expected to enjoy the transfer station premium will be launched in Bucheon-si, Gyeonggi-do, attracting significant investor interest.
Hyundai Engineering plans to launch the ‘Hill's Avenue Sosa Station’ commercial facilities in Bucheon-si, Gyeonggi-do. This complex is a mixed-use development with residential facilities, covering a total floor area of approximately 150,000㎡. The commercial facilities will span about 28,000㎡ across basement level 1 to the 3rd floor, comprising 238 units.
The commercial facilities are located right in front of Sosa Station, which serves Subway Line 1 and the Seohae Line. Notably, Sosa Station has an average daily ridership of approximately 46,000 passengers (based on 2020 data from Korea Transportation Corporation and Seohae Railroad Co., Ltd.) and is the only transfer station area in Bucheon-si, giving it high scarcity value.
Furthermore, the Daegok-Sosa Line, an extension of the Seohae Line, is scheduled to connect in 2023. Once opened, it will take about 10 minutes to reach Daegok Station in Goyang-si, Gyeonggi-do. Additionally, the GTX-B Line and the Wonjong-Hongdae Line are planned near the complex, further improving accessibility.
By car, the complex is adjacent to Gyeongin-ro and Sosa-ro, providing quick access to all areas of Bucheon-si and neighboring Seoul. The Siheung IC on the Seoul Metropolitan Area 1st Ring Expressway is nearby, and the 2nd Gyeongin Expressway is also close, facilitating easy travel throughout the metropolitan area.
The area also benefits from abundant demand. With 629 apartment units within the complex and about 9,000 units within a 1 km radius, rapid commercial district activation is expected. Additionally, Catholic University and Seoul Theological University are nearby, securing demand from university students as well.
Various redevelopment projects planned around the complex are also positive factors. These include the Sosa Redevelopment Promotion District, Sosa-bondong 134 redevelopment, Sosa 1-1 district, and Sosa 3 district, among others. These projects will increase foot traffic due to residential expansion and enhance future value through synergies in improving the residential environment.
The model house for ‘Hill's Avenue Sosa Station’ will be established in Bucheon-si, Gyeonggi-do.
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