With low interest rates maintained for over a year and abundant liquidity in the market, funds are flowing into income-generating real estate such as officetels and commercial properties. It has become difficult to expect interest income from bank savings and time deposits, and due to real estate regulations mainly targeting apartments, investors are increasingly seeking income-generating real estate, which is subject to relatively fewer regulations.
Income-generating real estate offers higher rental yields than savings and time deposit interest rates, and compared to apartments, it is much more advantageous in various conditions such as taxes, subscription rights, and loans. This trend is no exception in the Daegu real estate market. Among recently sold commercial properties within complexes, places like Duryu Starhills and Hills Avenue Daemyeong Central recorded high subscription rates despite their high exclusive area prices of 50 to 60 million KRW per pyeong, proving investors’ strong interest in income-generating real estate.
Meanwhile, interest is growing even more toward the commercial properties within the Dongdaegu Station Woobang IU Shell complex, scheduled for bidding in the first week of August. The commercial properties within Dongdaegu Station Woobang IU Shell are located in the Dong-gu area of Daegu Metropolitan City, which is expected to transform into a branded apartment district and form a new commercial zone due to the development around Dongdaegu Station.
Starting with Dongdaegu Station Woobang IU Shell in March 2022, followed by Dongdaegu Station The Sharp Centercity in May of the same year, and Dongdaegu Donghwa I Wish scheduled for occupancy in December 2023, along with redevelopment projects for nearby houses and villas, this area is expected to establish itself as a new residential complex with about 2,000 households.
Among these, the commercial properties within Dongdaegu Station Woobang IU Shell are the first commercial properties in the newly forming residential complex, raising investors’ expectations even higher. Moreover, these commercial properties are located in a transit-oriented area that secures demand not only from the floating customers of KTX Dongdaegu Station, Dongdaegu Integrated Transfer Center, and Daegu Metro Line 1 Dongdaegu Station but also from users of the adjacent Toyoko Inn Hotel, which has over 400 rooms. Additionally, the fact that the Daegu Metro EXCO Line passed the preliminary feasibility study last December is a positive factor.
The commercial properties within Dongdaegu Station Woobang IU Shell are street-type shops exposed on three sides to roads, with the entire layout designed as an open first floor to secure visibility and simultaneously improve accessibility to the shops. First-floor shops are advantageous for attracting foot traffic, which helps activate the commercial area and increase profitability. It is also noteworthy that these shops are linked to residents’ daily lives. Community facilities for residents such as exercise facilities, senior centers, daycare centers, small libraries, and rest plazas are located on the first floor where the shops are, naturally leading residents passing by.
Another notable advantage is the high exclusive area ratio compared to other nearby commercial properties. A high exclusive area ratio means a larger usable area, increasing utility for tenants and asset value for investors. Furthermore, the commercial properties within Dongdaegu Station Woobang IU Shell consist of practical small to medium-sized units ranging from 34 to 84 square meters, reducing the initial capital burden for investors and lowering the entry barrier for investment.
A sales representative stated, “Branded apartment towns lead the local housing market prices and can be said to form a commercial district on their own. Dongdaegu Station Woobang IU Shell commercial properties are the first shops in a newly forming branded apartment town, making their investment value exceptional.”
The commercial properties within Dongdaegu Station Woobang IU Shell will be sold through a public bidding process for 31 stores in the first week of August, and the sales promotion center is located in Dong-gu, Daegu.
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