60% of Commercial Real Estate Professionals View Yongsan as a Positive Move for the Presidential Office Area

[Asia Economy Reporter Kim Min-young] A survey has found that relocating the presidential office from the Blue House to Yongsan is expected to have a 'positive' impact on the local commercial district.

Al Square conducted a survey on the 'Impact on the Commercial Real Estate Market Following the Opening of the Yongsan Era' and announced the results on the 8th. According to the survey, 6 out of 10 respondents (58.6%) answered that the commercial district would be 'positive.' The survey was conducted from the 30th of last month to the 6th of this month, with a total of 1,110 participants, including domestic corporate real estate managers.

Among those who viewed the presidential office relocation as 'positive' for the commercial district, 30.8% believed that 'an increase in foot traffic would help revitalize the commercial district.' 24.6% cited 'expectations for additional occupancy by government and administrative agencies.' This was followed by 'the premium of being the location of the presidential office (21.5%)' and 'the possibility of large-scale development projects (12.3%).'

Among respondents who answered 'negative' about the commercial district, 4 out of 10 (39.1%) cited 'various rallies and protests' as the reason. 34.8% expressed concerns that 'development regulations' would negatively affect the revitalization of the commercial district.

Unlike the commercial district, the office market outlook showed a coexistence of optimism and concerns. Opinions were evenly split between those who viewed the presidential office relocation to Yongsan as 'positive (51.4%)' and 'negative (45.9%)' for the office market.

Among those who viewed it as 'positive,' 48.3% cited 'expectations for additional occupancy by administrative agencies' as the reason. 23.3% saw 'activation of surrounding development projects' as a positive factor for the office market.

More than half (55.4%) of those who chose 'negative' expected 'delays in development projects due to strengthened regulations under the president's supervision.' Opinions that 'frequent rallies and protests would deter companies from moving in,' negatively impacting the office market, accounted for 32.1%.

An Al Square official stated, "With the presidential office moving to Yongsan, there are mixed expectations of development and concerns about regulations in the commercial real estate market, including office facilities," adding, "The market impact will become clearer depending on the detailed plans for Yongsan's development."

Currently, Yongsan is undergoing projects such as transforming the railway maintenance depot site into an international business district, redeveloping Hannam New Town, and complex development of the United Nations Command site. At the provisional Cabinet meeting held on the 6th, a supplementary budget proposal for the presidential office relocation to Yongsan was approved, making it theoretically possible for President-elect Yoon Seok-yeol to move into Yongsan after May 10.