[Seongsu-dong, Hip+] Labor, Leisure, and Housing in One Place... 'The Virtuous Cycle of Hip'

'Work, Play, Live' Seongsu
Fashion, Entertainment, IT... Headquarters of Various Industries Moving to Seongsu-dong
Expansion of Knowledge Industry Centers, Local Government-Supported Social Ventures
High-End Residential Complex + Planned Development of Seongsu Strategic Maintenance Zone
"Hankyungbyeon Location, Industrial Changes, Positive Cycle of High-Income Demand"

Office workers and visitors are passing by in front of the knowledge industry center located in Seongsu-dong 2-ga, Seongdong-gu, Seoul.

[Asia Economy Reporter Yuri Kim] Faces you can meet on a weekday afternoon in Seongsu-dong, Seoul: people in their 20s dressed up heading to the cafe street, expressionless workers in their 30s leaving work, people in their 40s wearing slippers going to the convenience store near their homes, those in their 50s riding bicycles leaving their workplaces, and foreigners pulling suitcases visiting from overseas.

The reason Seongsu-dong is attracting attention is not simply because it is home to trendy hot places such as restaurants, cafes, and shops targeting the MZ generation (Millennials + Generation Z). It is also because it hosts workplaces of leading fashion, entertainment, and IT industries, and, with high-end residential complexes and a strong local demand base, Seongsu-dong is analyzed to continue its popularity for the time being as a place where 'work, play, and living' all happen.

According to industry sources on the 27th, various industries including fashion, food and beverage (F&B), gaming, entertainment, and IT are all settling in Seongsu-dong. The online fashion platform Musinsa relocated its headquarters to Seongsu-dong last September, ten years after establishing its corporation in Apgujeong-dong in 2012. Next year, when the new headquarters is completed on the former CJ Logistics site in Seongsu-dong, Musinsa along with 29CM, StyleShare, and SoldOut will be gathered in one place. Fashion brands such as Gentle Monster, Ader Error, and Customellow, as well as beauty brands like Aesop and Le Labo, have either already settled or plan to establish themselves in Seongsu-dong.

Entertainment and IT companies are also gathering in Seongsu-dong. Following Cube Entertainment, SM Entertainment has also established its base in Seongsu-dong. IT company Krafton purchased the Emart headquarters building in Seongsu-dong and plans to develop it into a complex building including its office. Car-sharing company Socar has moved into D Tower Seoul Forest in Seongsu-dong. Additionally, with the full-scale move-in of knowledge industry centers and expansion of shared offices, the influx of young office workers into Seongsu-dong has significantly increased. Thanks to active support from local governments, social ventures in the area have also surged. According to Seongdong-gu, the number of social ventures centered in Seongsu-dong was about 153 in 2016 and increased to 437 last year. This is the result of local government initiatives such as revitalizing the social economy and supporting the growth of social ventures.

Not only as a hot place but also as a business space, Seongsu-dong’s office and commercial building prices have risen to levels comparable to Gangnam-gu. According to the Korea Real Estate Board, the rent for medium to large-sized commercial spaces in the Seongsu (Ttukseom) area in the third quarter of this year was 43,700 KRW per square meter, up 17.2% from the same period last year. This is the highest increase rate among 54 districts in Seoul classified by the Real Estate Board. In terms of price, it is close to major Gangnam commercial areas such as Apgujeong at 47,500 KRW and Dosan-daero at 46,300 KRW. During the same period, the rent for small commercial spaces in Ttukseom also rose 9.4% to 48,200 KRW per square meter. As more people gather, vacancy rates are decreasing. The vacancy rate for medium to large commercial spaces in Ttukseom dropped from 3.3% in the first quarter to 3.1% in the second quarter and 2.6% in the third quarter this year. The vacancy rate for small commercial spaces also decreased from 6.3%, 4.9%, to 4.1%, respectively.

Seongsu-dong is also attracting attention as a residential area due to its location adjacent to Seoul Forest, known as the 'lungs of Seoul,' and the Han River. High-end residential complexes such as Trimage, famous as the 'celebrity apartment,' Galleria Foret, and Acro Seoul Forest have shown strong performance this year, with prices trading at more than double the previous sale prices regardless of the market environment. According to the real estate big data platform Asil, a 264㎡ (47th floor) unit in Acro Seoul Forest changed hands for 13 billion KRW in September. This area was priced in the 6 billion KRW range at the time of sale in 2017. In June, a 217㎡ (42nd floor) unit in Galleria Foret was traded for 8.8 billion KRW. Even considering the floor, this price is more than double the previous transaction of 4.13 billion KRW (9th floor) in July 2020. A 152㎡ (18th floor) unit in Trimage was sold for 6.45 billion KRW in August. Although it did not surpass the highest price for the same area in May (6.5 billion KRW, 25th floor), it rose nearly 1 billion KRW compared to the sale price at the end of last year (5.5 billion KRW, 16th floor).

Development in the Seongsu area is ongoing. The redevelopment of the Sampo Industry ready-mix concrete factory site is about to begin in earnest, and the Han River-side Seongsu Strategic Maintenance District redevelopment project is also expected to accelerate. Yoon Ji-hae, senior researcher at Real Estate R114, said, "The value of land along the Han River in Seoul is irreplaceable in terms of location, so high-density development centered on this area is inevitable," adding, "A virtuous cycle will occur due to changes in the aging industry and the rise in local income levels from high-end residential complexes."