Office Real Estate Remains Popular Amidst Real Estate Market Slump
In July of this year, a total of 8 office buildings were traded in Seoul, marking a 38.5% decrease compared to 13 buildings traded in the same month last year. Although there was an increase compared to the previous month, the monthly transaction volume still remains in the single digits. However, the rental market continues to show a stable outlook.
The vacancy rate for office buildings in Seoul in July was 2.53%, which is a 0.06% decrease from the previous month and about half of the natural vacancy rate considered to be 5%.
As a result, knowledge industry centers with prime-grade office space are once again attracting attention in the market.
An official from the real estate industry stated, "In the area near Dangsan Station, due to steep increases in sale prices and inflation, the sale price is set at the low 30 million KRW per pyeong (approximately 3.3 square meters). There are no additional complexes scheduled for sale next year, and with rising raw material and labor costs, sale prices are expected to increase further. Therefore, it is advisable to target larger knowledge industry centers that have already been supplied."
Additionally, due to recent considerations by large corporations to relocate their headquarters, some are opting to purchase office buildings rather than renew leases when lease expirations approach but extensions are difficult. For companies in the metropolitan area and provinces, there are cases of considering relocation to major areas within Seoul to secure high-quality employees. The Dangsan Station SK V1 tower, located in a double subway line station area, is expected to attract attention as a differentiated work environment that meets all these requirements.
Meanwhile, the ‘Dangsan Station 1st and 2nd SK V1 tower’ being constructed in Dangsan-dong, Yeongdeungpo-gu, Seoul, is capturing market interest. The combined complexes have a total gross floor area of approximately 108,338.97㎡ and will be built as landmark towers up to 35 floors above ground, including rooftop floors. With a maximum height of 35 floors, the complex will surpass nearby buildings such as Daesung D-Cube (30 floors), IS Biz Tower 1st phase (26 floors), and Hyundai Jisan Gasan Public (28 floors), becoming a new landmark knowledge industry center representing the area.
The Dangsan Station 1st SK V1 tower will be constructed with 5 basement floors to 35 floors above ground (including rooftop), with a total gross floor area of approximately 83,954.64㎡. It will consist of 558 knowledge industry center units, 72 warehouse units within the knowledge industry center, 17 neighborhood living facilities, and 28 dormitory units. The Dangsan Station 2nd SK V1 tower will have 6 basement floors to 18 floors above ground, with a total gross floor area of approximately 24,384.33㎡, comprising 172 knowledge industry center units (including warehouses), 7 neighborhood living facilities, and 1 fitness facility.
Above all, various specialized designs will be applied to create a pleasant working environment. The Dangsan Station 1st SK V1 tower will feature trendy community facilities rarely seen in existing office buildings, including Flowway (walking paths), Community Park (rest areas), Nature & Aquafield (waterside resting plaza), Harmony Garden (open resting space), and a Han River view sky lounge, all proportionate to its large gross floor area. The Dangsan Station 2nd SK V1 tower will also offer a differentiated work environment with rooftop sky gardens and balcony service areas for each unit.
Located within a 5-minute walk from Dangsan Station, a transfer station for Seoul Subway Lines 2 and 9 with high passenger usage, the complex offers convenient commuting and excellent access to Gangnam. Additionally, access to western Seoul and Gyeonggi Province is easy via expressways such as the Seobu Expressway, Olympic-daero, Gangbyeonbuk-ro, and Gyeongin Expressway.
The area around the complex, centered on Dangsan Station, has a commercial district with numerous business and convenience facilities including banks, convenience stores, and hospitals. Yanghwa Hangang Park is also conveniently accessible on foot.
The promotional center for Dangsan Station 1st and 2nd SK V1 tower is located near Yeongdeungpo-ro, Yeongdeungpo-gu, Seoul.
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