Despite Interest Rate Hikes, Knowledge Industry Center 'Indeogwon Station AK Valley' Remains Attractive and Opens for Sale

In July, the Bank of Korea implemented its first-ever 0.5% big-step rate hike, raising the benchmark interest rate to 2.25%, the highest level in 7 years and 11 months since August 2014. As a result, concerns over interest rate hikes and economic recession have led to widespread expectations that the housing market sentiment will further freeze.

Despite this market sentiment, knowledge industry centers are receiving high satisfaction from tenant companies as spaces with excellent surrounding environments. Unlike apartments or officetels, they are relatively free from loan regulations, allowing purchases with small amounts, and are excluded from housing unit calculations, so there are no resale restrictions. Additionally, benefits such as 70-80% loans and full interest-free loans on interim payments, 50% reduction in acquisition tax, and 37.5% reduction in property tax (until December 31, 2022) are also considered advantages, with extensions of these periods under further review.

Generally, it is thought that when interest rates rise, loan interest increases, causing real estate prices to fall; however, real estate prices may actually rise.

Last year, the Seoul office market experienced an unprecedented boom. According to the 'Q4 2021 Seoul Grade A Office Market Report' published by JLL Korea, Seoul office sales transactions amounted to approximately KRW 17.1 trillion last year. This year, the office rental price index turned upward for the first time in 48 months. Contrary to the unsettled housing market atmosphere caused by stringent regulations and rising raw material costs such as construction materials and ready-mixed concrete, the office market is enjoying a ripple effect with rising rents and decreasing vacancy rates.

Knowledge industry centers, which are similar to offices but relatively free from tax reductions and loan regulations, are at the center of attention. Knowledge industry centers have already been recognized as important income-generating real estate in the past. Previously, areas like Seongsu-dong and Gasan-dong in Seoul were considered key locations for knowledge industry centers, but recently, sales of knowledge industry centers in the metropolitan area have also shown strong performance.

Among them, Indeogwon in Anyang City, Gyeonggi Province, is evaluated as a new mecca for knowledge industry centers. Approximately 45,770 pyeong (about 151,200 m²) of greenbelt around Indeogwon has been lifted, and news of complex space development projects including residential, office, commercial, and cultural facilities is spreading. Accordingly, there is strong anticipation for smart mixed-use building landmarks with all-in-one building functions to be established. With the further strengthening of transportation infrastructure such as the GTX-C line, Wolpansun, and Indongsun, expectations are rising for the formation of a quadruple station area and a cluster business valley connecting Gangnam, Gwacheon, and Indeogwon.

Meanwhile, AM Plus Asset Development Co., Ltd. has started sales of the knowledge industry center 'Indeogwon Station AK Valley,' attracting attention. AM Plus Indeogwon Co., Ltd., a subsidiary of AM Plus Asset Development Co., Ltd., which was jointly established by the Aekyung Group and the Military Mutual Aid Association, is launching its third sale following the successful sales of the advanced knowledge industry centers 'Seoul Forest AK Valley' and 'Seongsu AK Valley.' It will be built in the Dongan-gu area of Anyang City, consisting of 2 basement floors to 15 above-ground floors, with a total floor area of 30,830 m².

Location conditions are important for knowledge industry centers, and one of the deciding factors is the demand base and accessibility. Indeogwon Station AK Valley is located within the Anyang Venture Valley (Anyang Venture Business Promotion District), offering excellent accessibility to Gangnam, Pangyo, Gwanggyo, and Anyang. Furthermore, it serves as a hub of the southern metropolitan knowledge-based industry belt connected to Pangyo and Gwanggyo Techno Valley and is the largest beneficiary area of the Gwacheon Knowledge Information Town development, ensuring abundant demand. Around the building, amenities such as E-Mart, Homeplus, CGV, and Lotte Cinema are nearby, enhancing convenience of living.

Within a 700-meter radius of the project site is Indeogwon Station, providing convenient public transportation access, and major roads such as the Second Gyeongin Expressway, Gwacheon-Bongdam Urban Expressway, and Seoul Ring Expressway are adjacent, facilitating easy commuting. The Gyeongsu-daero forms an excellent metropolitan wide-area transportation network connecting southwestern Seoul, Seongnam, and southern Gyeonggi Province. When the GTX-C (planned) opens, rapid access to Gangnam will be possible, and transportation will become even more convenient with the Wolpansun (Wolgot-Pangyo Line, scheduled to open in 2026) and Indongsun (Indeogwon-Dongtan Line, scheduled to open in 2026).

The internal environment also boasts designs and facilities that provide comfort and convenience. The building is designed with a high floor height of 4.2 meters to maximize space utilization, features excellent exterior design, and is a smart building effective in energy savings, distinguishing it from others. Additionally, 18% of the site area is developed as green space, allowing for relaxed rest.

A sales representative stated, "Among income-generating real estate, new knowledge industry center investments are considered alternatives during periods of rising interest rates as they reduce concerns about vacancies by securing stable tenant demand," adding, "Indeogwon Station AK Valley will enhance satisfaction for both end-users and investors with its transportation environment, living infrastructure, and sophisticated facilities and design."