The value of land within new towns or housing development districts can be confirmed by the bid rate of land sales. By looking at the results of land sales, one can roughly estimate how valuable the location of the land is and the expectations for its future development.
In reality, the more intense the competition among construction companies or developers participating in land bids, the higher the likelihood that the area is popular. Over the past 10 years, the average bid rates for commercial land in LH’s new towns have been reported as quite high, with Wirye New Town at 155%, Dongtan 2 New Town at 176%, and Dasan New Town at 261%. These new towns have now established themselves as some of the most popular areas within the Seoul metropolitan area.
‘Siheung Janghyeon Cityfront 561,’ which is about to launch office facility sales within the Janghyeon district of Siheung City, Gyeonggi Province, also recorded a high bid rate at the time of land sale. Block 5 recorded 141.8%, and Block 6 recorded 139.5%, showing bid rates comparable to Wirye New Town. According to a construction company official, they visited the site and conducted market research more than five times and held over ten internal meetings to determine the bid price. After several rounds of verification, construction companies and developers highly evaluated the location and future value of the Siheung Janghyeon district.
The reason why the Siheung Janghyeon district has gained high popularity in the construction industry is analyzed to be because it is expected to follow the success stories of Dongtan and Pangyo and emerge as a representative business district in the metropolitan area. Located in Siheung, Gyeonggi Province, the Janghyeon district is a public housing development district with a total area of 2,938,958㎡ and approximately 18,940 households. It is being developed as a new town representing the western region of Gyeonggi Province and is characterized by its central location connecting major cities in the southwestern metropolitan area such as Gwangmyeong, Anyang, and Pangyo.
In particular, the Janghyeon district has various development benefits, raising expectations for its success as a business district. The complex administrative town being developed around Siheung City Hall is scheduled to include various public offices such as a health center, central library, cultural center, and citizen cultural welfare center by 2024. Additionally, starting with office towers, several office facilities have recently been supplied around the complex administrative town, drawing attention to the formation of the Siheung City Hall Valley centered on the complex administrative town. Furthermore, near Siheung City Hall Station, a complex transfer center including a bus terminal, parking lot, and commercial facilities is also planned.
Moreover, the Janghyeon district is expected to complete a triple station area, further strengthening its transportation network. Siheung City Hall Station, which opened in 2018 with the Sosa-Wonsi Line, is scheduled to open the Shinansan Line in 2024 and the Wolgot-Pangyo Line in 2025. Once these two lines open, it will take about 30 minutes to reach Yeouido in Seoul and only eight stops to reach Bundang Pangyo, significantly increasing the future value of the area.
An industry insider said, “The large-scale development and transportation benefits of the Siheung Janghyeon district are expected to follow the success stories of Pangyo and Dongtan, which have emerged as representative business districts in the metropolitan area. The office facility ‘Siheung Janghyeon Cityfront 561’ within the Janghyeon district, which had a bid rate as high as those of other new towns, is also expected to gain high popularity along with the future value of the Janghyeon district.”
Meanwhile, ‘Siheung Janghyeon Cityfront 561,’ located in two office blocks within the Janghyeon district of Siheung City, Gyeonggi Province, boasts the largest scale in the district with 561 office units in two buildings, along with 87 commercial facilities called ‘Siheung Janghyeon Cityfront Avenue.’ Block 5 will have 420 office units and 64 commercial facilities from three basement floors to ten above-ground floors, while Block 6 will have 141 office units and 23 commercial facilities from four basement floors to ten above-ground floors.
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