The Hannam and Itaewon commercial districts recorded the lowest vacancy rates in Seoul's retail market. It is analyzed that these areas, located between Gangnam and Gangbuk with good accessibility and housing numerous cultural and artistic facilities, have become preferred commercial districts for the new consumer demographic, the MZ generation.
According to Cushman & Wakefield, a real estate consulting firm, the average vacancy rate for Seoul's six major street commercial districts?Myeongdong, Gangnam, Hongdae, Garosugil, Hannam-Itaewon, and Cheongdam?in the second quarter of this year was 18.7%, down 2.7 percentage points from the previous quarter. In particular, the vacancy rate in Hannam-Itaewon recorded the lowest at 10.0%, a 2.6 percentage point decrease from the previous quarter (12.6%).
The reason for the low vacancy rate in the Hannam-Itaewon commercial district is explained by Cushman & Wakefield as due to its good accessibility, being located between Gangnam and Gangbuk, and the presence of upscale residential complexes that support purchasing power. Luxury brands are located along the main roads, while trendy food and beverage (F&B) businesses, fashion, and beauty showrooms gather in the back alleys.
Moreover, with many world-renowned galleries and cultural and artistic facilities such as the Hyundai Card Storage and Blue Square, it is analyzed that the district has become a preferred commercial area for the new consumer demographic, the MZ generation. According to Seoul City's commercial district analysis service, women in their 30s constitute the highest proportion of the floating population in Hannam-dong, while women in their 20s make up the largest share in Itaewon 1-dong.
Recently, brands that primarily operated online have opened showrooms in Hannam-dong, further energizing the commercial district. Representative designer brands such as Marithe Francois Girbaud and Mardi Mercredi, as well as beauty brands like Nonfiction and Hince, have entered Hannam-dong.
The increase in foreign tourists visiting the Hannam-Itaewon commercial district to experience K-fashion and K-beauty has also contributed to the decline in vacancy rates in the area. An analysis by Cushman & Wakefield of foreign passenger statistics from Seoul Metro revealed that from January to May this year, the proportion of foreign passengers boarding and alighting at Hangangjin Station increased approximately threefold compared to the same period in 2019.
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