Four out of ten real estate experts forecast that the commercial real estate market will improve this year compared to last year. Despite interest rate hikes, cash liquidity remains abundant, and the market is expected to benefit significantly from spillover effects due to housing market regulations.
According to a survey conducted by commercial real estate data company RSquare targeting 110 industry experts on the ‘2022 Commercial Real Estate Market Outlook,’ 41.8% of respondents said the commercial real estate sales market would improve compared to last year. This means that four out of ten experts have a positive outlook on the commercial real estate market this year.
When asked why they expected the commercial real estate market to improve despite interest rate hikes, the largest group of experts (33.5%) cited ‘still abundant market liquidity.’
In particular, the transition from the COVID-19 pandemic to endemic has led to a rapid recovery of offline commercial districts, making this year’s retail investment market promising. Additionally, commercial real estate remains popular because it generally has lower tax burdens compared to housing and offers stable rental income.
Amid growing market interest in commercial real estate, the ‘Hillstate’ brand commercial facilities are gaining popularity in the Taepyeongno area, considered a prime location in Daegu.
Hyundai Engineering is successfully selling the landmark commercial facility ‘Hillstate Avenue Dongin’ in Dongin-dong 1-ga, Jung-gu, Daegu. This commercial facility is located within the large-scale residential-commercial complex ‘Hillstate Dongin,’ which will be built up to 49 floors high. It has attracted early attention from investors due to its solid fixed demand from residents and abundant foot traffic centered around Taepyeongno.
‘Hillstate Avenue Dongin’ is developed as a Hillstate brand shopping complex, which is highly preferred by consumers, drawing early interest from investors. With Hyundai Engineering as the constructor, it offers not only stability but also brand premium. Moreover, ‘Hillstate Avenue Dongin’ plans to attract foot traffic through Hyundai Engineering’s specialized design.
In fact, ‘Hillstate Avenue Dongin’ is positioned as a corner-type shopping complex at Dongin Intersection, securing both accessibility and visibility. Additionally, specialized designs to attract foot traffic are applied. It is directly adjacent to the road, allowing easy vehicle access, and the first and second floors are arranged in a street-type layout, facilitating pedestrian inflow. This setup is expected to attract both customers arriving by car and pedestrians.
Strong underlying demand is another advantage. It has a fixed demand from residents of ‘Hillstate Dongin,’ which consists of 1,009 households (941 apartments and 68 residential officetels), and nearby residential towns such as ‘Hillstate Dongin Central’ and ‘Central Daewon Cantavil,’ totaling about 2,500 households, are expected to absorb additional resident demand.
Furthermore, many major commercial facilities with high visitor traffic are located nearby, including Lotte Department Store Daegu Branch, Dongseong-ro Rodeo Street, Gyodong Jewelry Street, Daegu Chilseong Furniture Street, Chilseong General Market, and Kyungpook National University Hospital, which are expected to naturally attract foot traffic aiming to use these facilities.
Reasonable pricing and high net leasable area ratio also draw attention. The selling price is set at a lower level compared to recently sold commercial facilities, and the net leasable area ratio is 58% on the first floor, providing a spacious usable area, which allows buyers to expect the effect of purchasing at a relatively affordable price.
‘Hillstate Avenue Dongin’ is a large-scale neighborhood living facility with a total floor area of approximately 11,556㎡ from basement level 1 to the second floor above ground. This time, 110 units on the first and second floors above ground, excluding the basement, will be offered for pre-sale. The expected move-in date is May 2025.
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