Four out of ten real estate experts forecast that the commercial real estate market will improve this year compared to last year. This is expected due to the continued abundance of cash liquidity despite interest rate hikes, as well as the anticipated spillover benefits from 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 will ‘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 expect 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 of the COVID-19 pandemic to an endemic has led to a rapid recovery of offline commercial districts, making this year’s retail investment market promising. Additionally, commercial properties are expected to remain popular as they generally have lower tax burdens compared to housing and offer stable rental income.
As market interest in commercial real estate grows, neighborhood living facilities within large complexes that promise stable rental income are gaining popularity.
DL E&C is launching the ‘ePyeonhansesang Geumbit Grand Maison Neighborhood Living Facilities’ in Seongnam, Gyeonggi Province, and the ‘ePyeonhansesang Gwangju Station Complex Retail’ in Gwangju, Gyeonggi Province this month. Both locations feature corner-type retail spaces with solid fixed resident demand and prime station-area locations, attracting significant investor interest early on due to their abundant foot traffic.
Particularly, these retail spaces are developed under the highly preferred ePyeonhansesang brand, drawing attention. With DL E&C’s construction, investors can expect not only stability but also brand premium. Moreover, specialized designs unique to large construction companies will help attract even more foot traffic.
In fact, the ‘ePyeonhansesang Geumbit Grand Maison Neighborhood Living Facilities’ are positioned as corner retail spaces at the Singudae Intersection, offering excellent accessibility and visibility. Being directly adjacent to the road allows easy vehicle access, and the street-type layout of stores facilitates pedestrian inflow. This setup is expected to attract both customers arriving by car and pedestrians.
Strong underlying demand is another advantage. The ePyeonhansesang Geumbit Grand Maison, which will begin occupancy in November, is a large complex apartment with 39 buildings ranging from 7 basement floors to a maximum of 29 floors above ground, offering 5,320 units with exclusive areas of 39 to 84 square meters, securing approximately 15,000 fixed residents.
The complex is located in Geumgwang-dong, Jungwon-gu, Seongnam-si, Gyeonggi Province, and includes complex retail spaces (6 blocks, 53 units) and neighborhood living facilities (1 block, 25 units). Out of a total of 78 units, 48 will be offered for general sale.
In Gwangju-si, Gyeonggi Province, the ‘ePyeonhansesang Gwangju Station Complex Retail’ is also about to be launched. It has a fixed demand of 2,122 units within the complex and benefits from a station-area location near Gyeonggang Line’s Gyeonggi Gwangju Station, which is advantageous for attracting foot traffic. The retail spaces are primarily designed facing the main entrance of the complex, ensuring excellent accessibility and visibility. All complex retail units are planned on the first floor with a street-type layout to enhance accessibility.
The ‘ePyeonhansesang Gwangju Station Complex Retail’ will be offered in 3 blocks with 21 units. It is a pre-leased retail space with tenants in retail, education, and service sectors already established, minimizing vacancy risk and allowing for predictable returns, thus promising stable income.
Meanwhile, the complex retail spaces of ‘ePyeonhansesang Geumbit Grand Maison Neighborhood Living Facilities’ will hold bidding from September 19 (Monday) to 20 (Tuesday) for two days, and the neighborhood living facilities bidding will take place on September 21 (Wednesday). The bidding for ‘ePyeonhansesang Gwangju Station Complex Retail’ is scheduled for September 6 (Tuesday).
The bidding will be conducted through an open competitive bidding process on the official online website, and anyone aged 19 or older residing in Korea can participate regardless of their residence area or subscription account status. The bid deposit is 10 million KRW, and for ‘ePyeonhansesang Geumbit Grand Maison Neighborhood Living Facilities,’ a single bid deposit payment grants the opportunity to participate in bidding from September 19 to 21.
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