As MICE (Meetings, Incentives, Conventions, and Exhibitions) complex developments continue across the country, interest in the benefiting complexes is also rising.
MICE refers to a high value-added complex exhibition industry encompassing four business sectors: Meeting, Incentives, Convention, and Exhibition. It is called the flower of the tourism industry due to its higher profitability compared to general tourism products, and its large-scale development generates significant employment and economic ripple effects.
The development of MICE complexes is also impacting the real estate market. As employment creation leads to population inflow, various infrastructure and convenience facilities such as transportation, accommodation, business, tourism, shopping, and culture are established together, making life more convenient and concentrating demand.
An industry insider said, “MICE complexes are often developed in areas with a high concentration of companies and excellent accessibility, so they inherently have abundant underlying demand. Moreover, with exhibitions and cultural events attracting large numbers of visitors, convenience facilities quickly form around the area, improving living conditions and resulting in higher prices and greater price increases in surrounding complexes.”
In fact, complexes located near MICE complexes record high prices. According to real estate tech price data, ‘Hillstate 2nd Complex in Samseong-dong’ (completed in 2008), located within a 1km radius of COEX in Gangnam-gu, Seoul, showed the highest average price of 80.28 million KRW per 3.3㎡ in Samseong-dong. In contrast, ‘Raemian Samseong 2nd Complex,’ also in Samseong-dong but farther from COEX, recorded an average price of 60.5 million KRW per 3.3㎡.
The same applies to the area around BEXCO in Centum City, Haeundae-gu, Busan. ‘Daewoo Fromp World Centum,’ located right in front of BEXCO, has an average price of 44.12 million KRW per 3.3㎡, whereas ‘The Sharp Centum Star,’ also in Centum City but farther from BEXCO, shows a significantly lower average price of 27.78 million KRW per 3.3㎡.
There are also differences in price increases. ‘19th Complex Shinwoo Apartment’ (completed in 1994), located in Juyeop-dong, Ilsanseo-gu, Gyeonggi-do, within walking distance of KINTEX, saw the average sale price for a 126.66㎡ unit rise from 655 million KRW in July last year to 955 million KRW in July this year, an increase of 300 million KRW (45.8%) according to KB Real Estate price data. Meanwhile, ‘2nd Complex Kyungnam Apartment’ (completed in 1994), also in Juyeop-dong with similar location conditions but too far to walk to KINTEX, saw the average price for a 129.09㎡ unit increase from 560 million KRW to 765 million KRW during the same period, a rise of 205 million KRW (36.6%).
As a result, demand is also focusing on new complexes expected to benefit from MICE complex developments.
In Seoul, the Magok MICE complex development project in Gangseo-gu has been launched in earnest. The Magok MICE complex, developed across three blocks (CP1~3) in the Magok Special Planning Zone with a total floor area of 820,000㎡, is twice the size of COEX and will be transformed into a representative business complex in Magok with lifestyle accommodation facilities, a convention center, hotels, cultural and assembly facilities, retail spaces, and office facilities.
The first pre-sale project benefiting from this complex is ‘Lotte Castle Le West.’ Supplied by Lotte Construction in August within the Magok Special Planning Zone, ‘Lotte Castle Le West’ is a lifestyle accommodation facility consisting of five buildings from six basement floors to 15 above-ground floors, with a total of 876 units ranging from 49 to 111㎡. It boasts a triple station area, located between Magok Station on Seoul Subway Line 5 and Magoknaru Station, a transfer station for Line 9 and the Airport Railroad, with all subway stations connected by an underground public pedestrian passage, making public transportation very convenient.
Nearby, Lotte Construction’s first brand knowledge industry center, ‘Nollaum Magok,’ is also being pre-sold. Located in Gangseo-gu, Seoul, it consists of one building from five basement floors to 12 above-ground floors, with a total floor area of 30,711㎡, including 281 knowledge industry center units and 22 support facilities. It is within walking distance of Yangcheon Hyanggyo Station on Line 9 and accessible to Magoknaru Station, a transfer station for Line 9 and the Airport Railroad.
Near the MICE complex in Suwon, Gyeonggi-do, Hyundai Construction plans to pre-sell ‘Hillstate Gwanggyo Central Station First’ in August. Located in the Gwanggyo Residential Development District in Suwon, the complex consists of four buildings from seven basement floors to 20 above-ground floors, with a total of 211 households. A commercial facility named ‘Hill’s Avenue Gwanggyo Central Station First’ with a total floor area of 42,776㎡ will be developed alongside.
The Suwon MICE complex development project began with the opening of the Suwon Convention Center in March 2019, completed the hotel and department store in January last year, and finalized the complex with the opening of the aquarium Aqua Planet Gwanggyo in January this year.
In Songdo International Business District near Songdo Convensia in Yeonsu-gu, Incheon, POSCO Construction plans to pre-sell ‘Songdo Centum Hive’ in July. The complex consists of two buildings from five basement floors to a maximum of 39 above-ground floors, including 387 officetels, 1,620 life offices, and 198 street mall units. Songdo Convensia completed its second phase construction of a large exhibition hall and conference center with a total area of 64,000㎡ in July 2018 and is currently advancing the third phase project.
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