Continuous Regulations... The Answer Lies in Commercial Facilities with Stable Fixed Demand! Pyeongtaek Mams'Square Draws Attention

Apartment and Officetel Regulations Boost Commercial Facility Popularity... 'Moms' Square' Fixed Demand of 4,678 Households

With stringent real estate regulations applied not only to apartments but also to officetels, commercial facilities are emerging as alternative investment destinations. In particular, commercial facilities with solid fixed demand are preferred due to their ability to operate more stably.

In fact, according to the revised Local Tax Act Enforcement Decree announced last August, both pre-sale rights and move-in rights of residential officetels are now included in the housing count. This means that when owning multiple homes including officetels, an acquisition tax rate of up to 12% is applied. On the other hand, commercial properties are not counted as housing units, and mortgage loans can be obtained up to 60-70%, increasing their preference.

The preference is reflected in transaction volumes. According to the Korea Real Estate Board, commercial and office transactions totaled 150,086 from January to May this year. This is an increase of 23,132 transactions compared to 126,954 during the same period last year. Sales are also strong. The commercial units within the ‘Ulsan Gwell City Xi’ complex, which was sold in Ulsan last December, secured fixed demand from 2,687 households in the complex, resulting in all 152 units being sold out shortly after contracts began.

Real estate experts say, “Interest in investing in commercial facilities has sharply increased as regulations have been imposed not only on apartments but also on officetels. Especially, commercial facilities with a large fixed demand base can operate more stably, so commercial facilities with solid fixed demand are expected to continue enjoying great popularity.”

Recently, Dongmoon Construction has attracted attention by selling and leasing commercial facilities with mammoth fixed demand. This is ‘Moms’ Square’ located in Pyeongtaek-si, Gyeonggi-do. It is a commercial facility consisting of 214 units across four buildings from basement level 1 to ground level 5, with a total floor area of approximately 20,942㎡.

Moms’ Square is the only commercial facility forming a large commercial district in the Pyeongtaek Sinchon area. It is especially located in the center of the large-scale brand town apartment complex ‘Pyeongtaek Jije Station Dongmoon Good Morning Hill Mom City,’ allowing it to secure all residents of the complex as fixed demand and forming a jar-shaped commercial district where demand does not leak outside.

The 2,803 households of Pyeongtaek Jije Station Dongmoon Good Morning Hill Mom City phases 1, 2, and 4 have already completed move-in. Phase 3, with 1,134 households, is scheduled to begin move-in on August 26 this year, and a lighting ceremony was held to commemorate the move-in. Once phase 5, with 741 households, scheduled for sale in the second half of this year, is completed, Moms’ Square will have a total fixed demand of 4,678 households. Even calculating only 2-3 people per household, the fixed demand ranges from about 9,300 to 14,000 people, enabling essential businesses to move in and allowing stable revenue generation 24/7.

The surrounding demand is also abundant. It includes about 7,000 households in nearby Dongsak and Mosan districts, as well as employees of nearby industrial complexes such as Ssangyong Motor headquarters, Pyeongtaek Chilgoe General Industrial Complex, Pyeongtaek Comprehensive Logistics Complex, and Anseong Wongok General Industrial Complex.

With many nearby development benefits, the surrounding demand is expected to grow even stronger. The ‘Samsung Semiconductor Pyeongtaek Campus’ production line expansion, expected to have a production inducement effect of 41 trillion KRW and create 440,000 jobs, and the Brain City general industrial complex development project, expected to have a production inducement effect of 1.3 trillion KRW and create about 8,000 jobs, are planned nearby.

‘Key tenants’ targeting various age groups have also moved in. Dongmoon Construction signed a ‘Gangnam-gu Daechi-dong Academy District Education Specialization Contract’ and attracted prestigious academies from Daechi-dong into Moms’ Square, converting effective demand from not only the Sinchon area but also nearby Dongsak and Mosan residential districts, including parents and children.

Additionally, the sale price is set more reasonably compared to commercial properties in Godeok, Bijeon-dong, and Yongi-dong, reducing the initial investment burden. Since large commercial districts have not yet formed nearby and the location is at the center of the developing new residential town in Pyeongtaek, it offers an advantageous opportunity to secure a position at a better price than nearby market prices.

Stability through pre-lease is also guaranteed. Pre-lease is a system where commercial facilities can be purchased with tenants already secured, reducing the effort of finding tenants. There is no burden of vacancy, and buyers can directly check the location, view, and surrounding infrastructure before purchase, allowing accurate assessment of profitability.

The promotional center is located near Pyeongtaek-si, Gyeonggi-do, and detailed information can be found on the official website.