According to the KB Real Estate report, for the first time since the survey began, in the fourth quarter of 2021, commercial properties (38%) surpassed apartments (20%) as the most preferred real estate investment assets by investors. Due to the sharp rise in housing prices and the realization of comprehensive real estate tax burdens on multi-homeowners, apartment preference rapidly declined after peaking in 2019. As concerns over tax burdens reduced housing preference, commercial properties showed a steep upward trend in 2021, emerging as a blue-chip investment product.
In fact, according to the fourth quarter rental trend report by the Korea Real Estate Board, the yield on commercial real estate in 2021 was surveyed at 6-8% annually, generally showing higher returns compared to other investment products. Vacancy rates also showed stability, decreasing to 7.1% in the fourth quarter of 2020 and 6.8% in the fourth quarter of 2021, mainly in small-scale commercial properties. Furthermore, with the full lifting of social distancing measures, demand for commercial real estate facilities is expected to increase further.
Amid the rising popularity of newly developed commercial facilities within residential land development districts, the ‘Hanam Gam-il Hanyang Sujain Neighborhood Living Facility’ located in B2BL (Gam-idong area), Gam-il District, Hanam-si, Gyeonggi-do, is attracting attention as it prepares for bidding on Thursday, April 21st.
Comprising a total of 35 street-type commercial units, the ‘Hanam Gam-il Hanyang Sujain Neighborhood Living Facility’ is situated within the ‘Hanam Gam-il Hanyang Sujain’ complex, which recorded a first-priority subscription competition rate of 60.9:1 in May 2020 and is scheduled for move-in this September.
The ‘Hanam Gam-il Hanyang Sujain Neighborhood Living Facility’ benefits from exclusive demand within the complex (512 households) and approximately 3,000 fixed households within walking distance, including Gam-il Geumgang Pentarium Central Park (684 households) and Hanam Gam-il Sweet City 3 Complex (578 households). In addition to complexes where move-in is complete, many complexes are still scheduled for move-in, securing abundant hinterland demand.
Moreover, located on a main road with excellent road accessibility and high visibility, the street-type commercial facility enjoys a strong customer attraction effect. The scarcity of commercial land in the Gam-il District is also notable. The commercial land ratio in Gam-il District is about 0.7%, which is low compared to adjacent residential development districts such as Wirye New Town (1.5%) and Hanam Misa District (3.5%), making it a region with high scarcity of commercial facilities. Additionally, it is close to the commercial land in Gam-il District and the ‘Acloud Gam-il’ commercial facility (257 units) scheduled for move-in around June 2023, which is expected to create synergy between commercial zones.
The ‘Hanam Gam-il Hanyang Sujain Neighborhood Living Facility’ bidding will begin on Thursday, April 21st, with contracts scheduled for Friday, April 22nd.
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