Strong Demand for Office and Retail Investments... 'Hyundai Terra Tower Siheung City Hall Station' Commercial Facilities in Focus

- High Demand Compared to Office Supply... Office Commercial Facility Investment Gains Attention Backed by Underlying Demand
- ‘Hyundai Terra Tower Siheung City Hall Station’ Commercial Facility Features Perfect Trio of Station Area, Government Offices, and Brand

As uncertainty surrounding investments in income-generating real estate spreads recently, investors are focusing on office and commercial facilities with solid underlying demand.

Income-generating real estate was highlighted as an alternative investment to apartments until last year due to real estate market regulations. However, due to high loan dependency and steadily rising interest rates since last year, profitability has deteriorated, leading to a decline in demand. According to the Korea Real Estate Board, the nationwide officetel transaction volume in February this year was only 4,930 units. Compared to 10,655 units traded in the same month last year, the transaction volume has nearly halved.

In contrast, office facilities are gaining attention as stable income-generating real estate due to strong demand relative to supply. Especially, office facilities supplied near subway stations and public institutions can expect stable rental income based on abundant underlying demand.

According to Real Estate Planet, a commercial real estate specialized platform, the average vacancy rate for offices in Seoul last year was 2.78%. After recording 3.62% in January 2022, it dropped to 2.07% in December, indicating high demand. Notably, the vacancy rate in the Gangnam area is below 1%, and the average monthly vacancy rate in the Yeouido area is 1.18%, which is lower than the Seoul average.

Thanks to strong office demand, commercial facilities within office buildings are also attracting attention. Since office demand is high, the underlying demand for commercial facilities within offices is abundant, allowing for stable sales and rental income. As a result, investors are focusing on the sale of commercial facilities within office buildings.

Amid this, the commercial facilities within the complex office building ‘Hyundai Terra Tower Siheung City Hall Station’ supplied in Janghyeon District, Siheung City, Gyeonggi Province, are drawing attention with their grand opening.

Hyundai Terra Tower Siheung City Hall Station spans from basement level 5 to ground level 10, with a total floor area of 67,488㎡, consisting of office facilities, neighborhood living facilities (offices), neighborhood living facilities, and fitness facilities. Among these, 88 commercial units are located from basement level 2 to ground level 1.

The commercial facilities at Hyundai Terra Tower Siheung City Hall Station are situated in a public office and station area adjacent to Siheung City Hall and the Seohae Line Siheung City Hall Station in Janghyeon District, offering stable sales prospects due to fixed demand from office workers and a high volume of consumer foot traffic.

The development benefits of the Siheung Janghyeon District and Siheung City Hall Station station area also make it advantageous for attracting foot traffic. First, the Seohae Line Siheung City Hall Station is nearby, providing convenient access. In the future, the Seohae Line is planned to connect to Gimpo Airport and Goyang Daegok Station, facilitating wide-area travel. Additionally, the Sinansan Line (scheduled for 2025) and Wolgot?Pangyo Line (scheduled for 2026) are planned to be introduced at Siheung City Hall Station, making connections to major business districts such as Yeouido and Pangyo easier.

Moreover, the project boasts a fast transportation network connecting Seoul and the metropolitan area, including the Metropolitan Area 1st Ring Expressway, the 2nd and 3rd Gyeongin Expressways, and the Seohaean Expressway. Nearby, a complex transfer center combining a bus terminal, transfer parking lot, bus and taxi stops, cultural facilities, and commercial facilities is planned at Siheung City Hall Station.

Strong fixed demand is also expected. Centered around Siheung City Hall, the Siheung City administrative town is planned to include the central library, sports park, citizen cultural welfare center, and health center, securing an underlying demand of 18,600 households. A nearby central commercial district is also planned, promising various infrastructure and synergistic effects.

A sales official explained, “Hyundai Terra Tower Siheung City Hall Station is a complex office building consisting of offices and commercial facilities, located at a triple station area and the public office site of Siheung City Hall, enabling simultaneous capture of both foot traffic and fixed demand.”

Meanwhile, the promotional centers for Hyundai Terra Tower Siheung City Hall Station commercial facilities are located in two places: Siheung City, Gyeonggi Province, and Yeongdeungpo-gu, Seoul.